Two possible near term scenarios both point to possible retracement.
1) Red Box Price bounces off from 20 EMA and tests the year long resistance zone again.
2) Blue Box Price bounces off 40 EMA. After the retracement, price might test the annual resistance zone.
Trading Plan:
*See if the daily candle makes a higher high compared to the May 3rd candle.
*If it does, there's a good chance we're going to climb above 1.16. (We are, after all, in a rising trend).
*If not, this might be the start of a bearish cycle for EURUSD.
*Either way, what we do KNOW FOR SURE is that EURUSD got rejected at annual resistance at 1.16. Thus stay bearish until proven bullish.
Good luck!
1) Red Box Price bounces off from 20 EMA and tests the year long resistance zone again.
2) Blue Box Price bounces off 40 EMA. After the retracement, price might test the annual resistance zone.
Trading Plan:
*See if the daily candle makes a higher high compared to the May 3rd candle.
*If it does, there's a good chance we're going to climb above 1.16. (We are, after all, in a rising trend).
*If not, this might be the start of a bearish cycle for EURUSD.
*Either way, what we do KNOW FOR SURE is that EURUSD got rejected at annual resistance at 1.16. Thus stay bearish until proven bullish.
Good luck!
Comment:
By bearish, I mean a complete change in trend. So we might see 1.05 being tested in the long run (within this year).