The bears are in control on the euro/dollar currency pair (EUR/USD) as an important resistance level has held.
The EUR/USD (which measures the value of the euro vs. the greenback) continues to lose ground as the long-term downtrend is intact and active. Notice the strong rejection of higher levels last week. The currency pair moved back up to the key resistance zone of 1.0855-1.0900 but then reversed, losing a lot of ground in the process.
The weekly EUR/USD chart reveals the formation last week of a big bearish pin bar, reflecting the weakness in the pair.
Traders should look to sell whenever there is short-term strength, as long as the pair remains below that 1.0855 - 1.0900 resistance zone.
Keep an eye on the one-hour, four-hour and daily charts for price action sell signals.
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This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.