EURUSD - Price is at equilibrum now, what will happen next?
On the daily time frame price has arrived to the equilibrum level. It is trading rading at the major uptrend line and at the Kumo.
It will be very interesting to see how EURUSD will behave here. After undecision and retracement to/above 1,3800, the 4 Hrs bearish trend resumed, and is still intact. The daily Kumo is very thin, so theoretically it wouldn't be difficult to break through. However given that Slow Stoch is oversold on both time frames, there will be pull backs. The big question is wether we see a pull back first from here to ard 1,3760 support level, or we see the pullback only after the trend and Kumo break. In second case I think after another sharp drop close to 1,3600, the price first will retest 1,3700-1,3720 before the major trend reversal gets further confirmation.
So the strategy will remain the same. Sell any pullbacks, and stay with the bearish bias until the price is trading below the Kumo on the 4 Hrs chart.
It will be very interesting to see how EURUSD will behave here. After undecision and retracement to/above 1,3800, the 4 Hrs bearish trend resumed, and is still intact. The daily Kumo is very thin, so theoretically it wouldn't be difficult to break through. However given that Slow Stoch is oversold on both time frames, there will be pull backs. The big question is wether we see a pull back first from here to ard 1,3760 support level, or we see the pullback only after the trend and Kumo break. In second case I think after another sharp drop close to 1,3600, the price first will retest 1,3700-1,3720 before the major trend reversal gets further confirmation.
So the strategy will remain the same. Sell any pullbacks, and stay with the bearish bias until the price is trading below the Kumo on the 4 Hrs chart.