And The Ribbon Turned Bearish Too …

Dear Readers,

Referring our 28th February post, we introduced you the concept of the Ribbon – based on two averages – which filters the direction of the trend (sideways activity and Ribbon are not best friends by the way).

At that time, we showed you that the daily Ribbon on the EUR/USD turned in favors of the bulls. The reason of this post is to highlight that bears are now back in control – using this “filtering” method.

We include again as referral our Ribbon special report we did at that time.
Click on the right link to open that Special Report.

Below is today’s EUR/USD daily chart in addition to our comments of the day. You can note the ribbon is again bearish for the Euro on the daily database following the bearish moving average cross. As the weekly Ribbon is still bearish using the Ribbon filter, the 1.2970 level has become the last standing survival support for the bulls. Be careful below this level, the Dow Theory will change team once we break 1.2970 -  from upside cycle it will turn into a new downside cycle. Then, 1.2620 will act as a magnet, and could be tested quickly once the Dow Theory turns bearish on the daily database.

Our BearBull index hit today [0;10] and the bar chart is in red again. Difficult to not support the bears with all these bearish warnings. Selling rallies is the preferred strategy and/or follow the bears is they can take out 1.2970.

Have a success full trading day.
Best Regards
F.A.M.C. Ltd