EURUSD has fallen for the 3rd consecutive day and has formed a 3 black crows candlestick pattern on daily chart. One of the fundamental factors that support this move was the comments by Fed Chair Yellen. The dollar maintained the strong footing set at the beginning of the week, after US Fed Chair Yellen said on Tuesday that, while a gradual approach to hikes is appropriate in the light of subdued inflation, she also added that the Central Bank should be wary of moving too gradually.
This makes us believe that the downward move is yet to continue for quite some time. Therefore shorting is the only preferred trading position right now. Any retrachment to the upside in shorter time frames will give value to go short on the pair.
