EUR/USD - RSI DIVERGENCE | OVERBOUGHT STOCHASTIC / TREND LINE Short

Euro Fx/U.S. DollarFXCM

Description

⋅ Jul 16, 2020 10:39 AM

EUR/USD has consolodated for the past few weeks and has recently pushed higher. Indicators suggest a reversal from here.

Daily Bearish RSI Divergence
Trend Line Rejection
Daily Stochastic Overbought
Potential 200WMA Rejection (Weekly Candle) @ {1.1331}

VERDICT: Due to the reasons above, I forecast EUR/USD to fall in the short/mid term and will look to open a short position when the opportunity presents itself. Bear case strengthens if price closes below {1.1331} on the weekly candle.

Comment

⋅ Jul 16, 2020 10:51 AM

NOTE: 200WMA translated onto daily chart, as shown above, is off by ~70pts