HEAD AND SHOULDER PATTERN WAS ALREADY COMPLETED SOME MONTHS AGO ON THE WEEKLY CHARTS! Since then the price has been dropping towards the target and the next support that lies in the region of 1.1000. At the moment the EUR Is too oversold which is also evident on the RSI of daily charts (bullish divergence), The SPOT would likely recover some of its losses until the weekly 50 EMA where the price has been rejected on more than two occasions!
It will be more beneficial for the bears to wait until the price hits 1.14500 level where the weekly 50 EMA lies. Once the price HITS it will a good level to execute a SHORT trade with target being 1.09000 level and STOP LOSS set at 1:1 risk to reward ratio.
For the BULLS the short term trade setup should target the 1.14500 after where its suggested to close the trade as the selling pressure would resume massively towards the 1.09000 target!
Fundamentals are also on bears side as the EU (italy) is on the verge of recession and amid slowing eurozone economy might not help the EUR at all. As for the USD, the trade deal is nearly complete which would initiate the risk ON appetite in the market making the demand for the greenback high.
THIS JUST REPRESENTS MY ANALYSIS AND ITS NOT A TRADE SIGNAL FROM ME. ANY DECISION IS SOLELY BASED ON YOUR FUNDAMENTAL AND TECHNICAL JUDGEMENT OF THE MARKET. I AM A BEAR ON THIS TRADE AND ONCE THE WEEKLY 50 EMA IS REACHED I WILL PLACE A SHORT TRADE. I WILL UPDATE THE CRITERIA FOR TRADE ENTRY IN A NEW POST. PLEASE LEAVE A LIKE FOR YOUR SUPPORT AND FOLLOW ME IF YOU ARE INTERESTED IN MY IDEAS. THANK YOU
It will be more beneficial for the bears to wait until the price hits 1.14500 level where the weekly 50 EMA lies. Once the price HITS it will a good level to execute a SHORT trade with target being 1.09000 level and STOP LOSS set at 1:1 risk to reward ratio.
For the BULLS the short term trade setup should target the 1.14500 after where its suggested to close the trade as the selling pressure would resume massively towards the 1.09000 target!
Fundamentals are also on bears side as the EU (italy) is on the verge of recession and amid slowing eurozone economy might not help the EUR at all. As for the USD, the trade deal is nearly complete which would initiate the risk ON appetite in the market making the demand for the greenback high.
THIS JUST REPRESENTS MY ANALYSIS AND ITS NOT A TRADE SIGNAL FROM ME. ANY DECISION IS SOLELY BASED ON YOUR FUNDAMENTAL AND TECHNICAL JUDGEMENT OF THE MARKET. I AM A BEAR ON THIS TRADE AND ONCE THE WEEKLY 50 EMA IS REACHED I WILL PLACE A SHORT TRADE. I WILL UPDATE THE CRITERIA FOR TRADE ENTRY IN A NEW POST. PLEASE LEAVE A LIKE FOR YOUR SUPPORT AND FOLLOW ME IF YOU ARE INTERESTED IN MY IDEAS. THANK YOU
