Show less
Video / 25 July 2016 at 7:11 GMT

Technical analysis of a EURUSD trade: Collins

Alan Collins from takes a look at EURUSD and explains why he is going short into this week and looking to sell any short-term rallies.

Collins has three main reasons:

1. Last week's decline through 1.1000 was the thirrd down week in a row and the fouth in the last five weeks.

2. Although the market stalled close to a 62% correction to the December–May rise, like in June, the mid-point of an increasingly negative Keltner channel has capped rallies.

3. The key 13-day moving average has also been capping rallies ever since the post-Brexit vote drove EURUSD to a June 4 month low.

The decline is gradual rather than explosive, and Collins expects that scenario to continue. 

Profit-taking rallies are likely to find sellers near the 13-day moving average, currently 1.1049.

On the downside, the target is June’s 1.0910 low, then 1.0825, which is February’s bottom or even 1.0782 a broader 76% correction point.

Only a rate above 1.1168 would prove this view incorrect and show that sentiment has turned positive.
26 July
assi assi
Morning Alan, still same level for entry to short...? please update. Thanks
26 July
AlanCollins AlanCollins
yes - today's sentiment is a little more positive but that is expected to be temporary.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail