Technical Outlook:
LSMA Indicators: The 45 period LSMA in red and the 53 period LSMA in blue are both trending downwards towards the pivotal 50 level, reflecting a bearish sentiment taking hold.
TSI Behavior: The True Strength Indicator has just crossed and is angling downwards, with the lines beginning to diverge, enhancing the bearish signal's credibility.
MACD Crossover: The MACD line crossing at 46, following last Friday's rally, now exhibits a downward trajectory, aligning with the growing bearish momentum.
Price Action Context: There is notable price congestion around the 1.07490 area, suggesting a distribution phase that could precede a downward move if support fails.
Trade Rationale:
The synergy of these indicators, paired with a comprehensive analysis of price action, suggests a potent opportunity for a short position. The alignment of LSMA lines descending, TSI's bearish crossover, and the MACD's downward turn post-rally indicates a shift in market dynamics. The distribution around 1.07490 serves as a potential inflection point for price, where a sustained move below could confirm the bearish outlook and offer a strategic entry point for traders.
Action Plan:
Consider a sell position on EUR/USD, while closely monitoring the 1.07490 level for confirmation of the bearish momentum. As with any trade, ensure proper risk management strategies are in place to protect against unexpected market movements.
LSMA Indicators: The 45 period LSMA in red and the 53 period LSMA in blue are both trending downwards towards the pivotal 50 level, reflecting a bearish sentiment taking hold.
TSI Behavior: The True Strength Indicator has just crossed and is angling downwards, with the lines beginning to diverge, enhancing the bearish signal's credibility.
MACD Crossover: The MACD line crossing at 46, following last Friday's rally, now exhibits a downward trajectory, aligning with the growing bearish momentum.
Price Action Context: There is notable price congestion around the 1.07490 area, suggesting a distribution phase that could precede a downward move if support fails.
Trade Rationale:
The synergy of these indicators, paired with a comprehensive analysis of price action, suggests a potent opportunity for a short position. The alignment of LSMA lines descending, TSI's bearish crossover, and the MACD's downward turn post-rally indicates a shift in market dynamics. The distribution around 1.07490 serves as a potential inflection point for price, where a sustained move below could confirm the bearish outlook and offer a strategic entry point for traders.
Action Plan:
Consider a sell position on EUR/USD, while closely monitoring the 1.07490 level for confirmation of the bearish momentum. As with any trade, ensure proper risk management strategies are in place to protect against unexpected market movements.
Trade closed: target reached:
Closed 80% of my positions and adjusted to another TP down below. Stop loss moved to BE. Let's see where the price leads us.