Euro dollar bears in control on the fast charts and currency array

The euro has been selling heavily in the early part of the London trading session, with the currency array indicator displaying this clearly on the 15m timeframe. The only pair lagging is the EUR/CHF, with all the other pairs neatly stacked at the bottom of the ranking ladder and now offering potential reversals from the over sold condition on the faster timeframe. The chart alongside for the EUR/USD reflects this bearish sentiment and here we have the accumulation and distribution indicator displaying the various levels of potential support and resistance. The indicator works on the price action and signals those areas where levels have been tested from above and so are likely to act as support, and those where price has been tested from below, and therefore likely to act as resistance.

And of course for reversal traders this is a great time to spot those phases where a currency or currency pair is heavily overbought or oversold. Here the euro and associated pairs are reaching an extreme on the faster timeframes, and so may be preparing for a reversal higher in due course.