Forex Trading Library

EURUSD – Bearish pressure continues to build

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Technical

Monthly: Trading within a bearish channel formation. Trend line resistance is seen at 1.2546. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) continue to attract sellers. Consecutive negative months have been followed by a doji candle.

Weekly: After posting a bearish Outside Week (week 16th April) the major currency pair has broken the Ending Wedge formation to the downside. The move has been impulsive, which normally highlights any recovery in the pair would be mixed and limited. Price action over the last 8 weeks has been mixed and volatile sideways range with support just in front of the 261.8% extension of 1.1490 (from 1.2557-1.2149). Trading inside the weekly ichimoku cloud with prices look to be forming a bearish flag with a bias to break to the downside.

Daily: Trading within a symmetrical triangle formation. Price action has been mixed and volatile. Bias is mildly bearish but we require a break of 1.1508 to confirm bearish momentum. With a stop placed above the previous swing low of 1.1854, a short trade offers ample risk/reward.

 

We look to Sell at current levels 1.1700-1.1750

Stop: 1.1880

Targets: 1.1480 & 1.1200

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