EUR/USD TECHNICAL ANALYSIS: BEARISH
Euro rejected on a take a look at of two-month vary resistance vs US GreenbackCapturing Star candlestick hints at topping as bullish conviction ebbsAffirmation of reversal wanted to make bearish setup actionable
Knowledge offered by
of purchasers are internet lengthy.
of purchasers are internet brief.
The Euro recoiled from resistance on the prime of its current vary in opposition to the US Greenback, proving prescient the warning provided by damaging RSI divergence about sturdiness of a surge to four-month highs final week. The looks of a dramatic-looking Capturing Star candlestick at resistance now bolsters the case for draining bullish conviction. Which will precede a downturn.
Every day EUR/USD chart created with TradingView
Zooming into the four-hour chart for a way of near-term positioning, EUR/USD appears to be sitting squarely at assist within the 1.1110-16 space, marked by a former resistance barrier in addition to the pattern line guiding costs’ newest upswing. Breaking beneath that appears to reveal the 1.1051-65 congestion area, adopted by the vary backside within the 1.0968-90 zone.
Four-hour EUR/USD chart created with TradingView
On steadiness, because of this – capitulation on the vary prime however – the bounds of the upswing from late-November lows stay intact for now. Moreover, proximity to quick assist appears to make initiating brief publicity unattractive kind a danger/reward perspective. Would-be sellers could choose to attend for a confirmed break of upward-sloping assist earlier than contemplating the setup actionable.
EUR/USD TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
To contact Ilya, use the feedback part beneath or @IlyaSpivak on Twitter