EurUsd - Reversal with a Shooting star
EurUsd has printed a shooting star candlestick yesterday. We are so late in this intermediate cycle that this must be the sign of the reversal. Today we have the swing so all the swing traders and candlestick reversal traders are already on board for the short trade.
MACD and RSI are showing divergencies.
Though we couldn't tag the upper trendline and the reversal is not so strong as in the US Dollar Index it's a low risk short trade now.
I will use Fibonacci to predict where this decline is ending. But now it's more than enough to see that we are going to break the blue trendline first and heading to the green box as a final target. Price may also break the green trendline but WILL NOT ENTER OR BREAK THE RED BOX.
After this Euro decline (and dollar rally) we have to get prepaired for a weakening dollar in the following years.
The FED simply printed too much greenback just forgot to tell to the Americans. But the chart is not lying.
MACD and RSI are showing divergencies.
Though we couldn't tag the upper trendline and the reversal is not so strong as in the US Dollar Index it's a low risk short trade now.
I will use Fibonacci to predict where this decline is ending. But now it's more than enough to see that we are going to break the blue trendline first and heading to the green box as a final target. Price may also break the green trendline but WILL NOT ENTER OR BREAK THE RED BOX.
After this Euro decline (and dollar rally) we have to get prepaired for a weakening dollar in the following years.
The FED simply printed too much greenback just forgot to tell to the Americans. But the chart is not lying.
We are at the first stop: 10 EMA.
I think tomorrow the NFP number will be good for the dollar so we can shift gears to break the 20 EMA.