EURUSD dropping nicely, remain bearish for a further drop
Sell below 1.1200. Stop loss at 1.1221. Take profit at 1.1140.
Reason for the trading strategy (technically):
We have seen price form a really nice reversal pattern. We remain bearish below major resistance at 1.1200 (Fibonacci retracement, horizontal pullback resistance, bearish divergence) and we expect a drop from this level towards at least 1.1140 support (Fibonacci retracement, horizontal swing low support).
Stochastic (21,5,3) is seeing strong resistance and also bearish divergence vs price, signalling that a drop is impending. A recent bearish exit signals a strong change in momentum too.
Reason for the trading strategy (technically):
We have seen price form a really nice reversal pattern. We remain bearish below major resistance at 1.1200 (Fibonacci retracement, horizontal pullback resistance, bearish divergence) and we expect a drop from this level towards at least 1.1140 support (Fibonacci retracement, horizontal swing low support).
Stochastic (21,5,3) is seeing strong resistance and also bearish divergence vs price, signalling that a drop is impending. A recent bearish exit signals a strong change in momentum too.