EURAUD is approaching an intersection of a mid-term channel resistance and Fibonacci resistance line (61.8%). On top of this it is showing bearish divergence on the 1H time frame and showing potential to develop supporting bearish divergence on the 4H time frame.
Upon market open Sunday evening I'll watch for this pair to break the short term trend support (dark green line) and short the pair down to the channel support just below my 100% Fib support.
R:R for the position shown: 3.68
Comments
akshasuv
⋅
Nice work as always.
Z_Afiq
⋅
very good job sir :)
ForexButler
⋅
Is this a divergence? There is so much time with no movement in between. I don't see a short here. It an up-trend.
QuileHills
⋅
Lower highs on RSI in overbought zone, higher highs on the price. Only confirmed with a sustained break of the trend support. The shown position is not pending just used for an example at the moment. Entry would changed depending on where and how (if) it breaks the green trend support.
ForexButler
⋅
But the first high on the RSI just came from the explosive up-movement. We are still in an up-trend here. If price confirms the break of support trendline we might see some shorts here, but not because of the divergence.
QuileHills
⋅
Indicators and patterns are never the cause of a movement, they're they result of a movement. I'm not sure what your point is.
ForexButler
⋅
Hi Quile, I wanted to give a different view on this "divergence". Technically yes this is a divergence to the RSI, but in the context with the explosive 1-candle up-move I would rather suggest to go short directly(pick the top - small risk). Waiting for a confirmation to short just gives you a bigger risk.