EURUSD - Trend is long term bearish, with px at key support
This short trade has worked well since 1,3600 - 1,3700 levels. The trend is still bearish in general, but we need to check few things here.
Daily: DMI-ADX still bearish , with ADX still climbing. Ichimoku setup is bearish , so is MACD and Slow Stoch . However Slow Stoch has reached pretty oversold level, and also Price is at key horizontal support.
No one should be surprised if we see some correction from this 1,3385 - 1,3400 area. The possible corrective tgt is 1,3500-1,3525. I do not recommend to buy into this counter move. Maybe you can reduce some dollar exposure, but do not trade counter trend as that is not a good risk reward trade. I would rather sell again at 1,3500-1,3525 level.
In case the key support gets broken, next bearish tgts will be 1,3300 and 1,3200.
4 Hrs: Absolutely bearish still, but here we have a very high ADX number. Very often when ADX gets above 45-50 level, it brings a correction as the trend needs a correction and needs to give back some momentum to persist. However as I wrote above, it can still happen, that it breaks below the support line and then we see one final selloff downto 1,3300 befor it gets some correction.
I will post observation on DXY (USD Indx ) soon as well, which clearly shows the same characteristics.
Daily: DMI-ADX still bearish , with ADX still climbing. Ichimoku setup is bearish , so is MACD and Slow Stoch . However Slow Stoch has reached pretty oversold level, and also Price is at key horizontal support.
No one should be surprised if we see some correction from this 1,3385 - 1,3400 area. The possible corrective tgt is 1,3500-1,3525. I do not recommend to buy into this counter move. Maybe you can reduce some dollar exposure, but do not trade counter trend as that is not a good risk reward trade. I would rather sell again at 1,3500-1,3525 level.
In case the key support gets broken, next bearish tgts will be 1,3300 and 1,3200.
4 Hrs: Absolutely bearish still, but here we have a very high ADX number. Very often when ADX gets above 45-50 level, it brings a correction as the trend needs a correction and needs to give back some momentum to persist. However as I wrote above, it can still happen, that it breaks below the support line and then we see one final selloff downto 1,3300 befor it gets some correction.
I will post observation on DXY (USD Indx ) soon as well, which clearly shows the same characteristics.
4 Hrs time frame: Bullish candle and likely a bullish DMI cross soon. Depending on current candle close we may see a weak bullish Tenkan/Kijun cross too. Upper res lvls: 1,3450 / 1,3480. Above these it can develope to a bullish counter trend, maybe upto 1,3550.
Daily: Correction started, possibly to Kijun and trendline retest.