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.
