EURUSD - Shorts could be in trouble

FX:EURUSD   Euro / U.S. Dollar
This is the updated chart to my previous EURUSD analysis. Price did indeed rally back to the 100% Fib level. Price action looks bullish given the Dollar Index is at a major resistance and a major bearish divergence looks to be in play.

For those short in EURUSD .

Look for a break out from the price channel . If yes, then we could see a potential rally. Price is likely to drop down back to 1.23638 - 1.238 levels to test the support zone . Exit then.

Attached references to the previous analysis and the longer term weekly analysis.

A weekly close above 1.25 could see a rally to 1.28.


Thanks for the update.. Agreed EURUSD Remains a sell so far .. good luck
+1 Reply
justatrader Technician
Yeh.. let's hope the US Dollar does the same it did last week. Declines on Mon/Tue and by Wed it was back in the game.
Technician justatrader
At least this is in the direction of the dominant trend, with good Justification, so , doesn't really matter if it turns to be a loser or a winner..
justatrader Technician
Sure the trend is down.. But... take a look at this. Bullish 3 bar reversal. if today's close is above 1.23725, shorts could get squeezed out. 1.25 would be the next level to look into. Matter of fact, these short term rallies aren't much of a bother. It all boils down to how much a trader has been strongly positioned into. Bottom line... its all about money management.

Technician justatrader
I see a main resistance being tested now, the first tier falling trend line, so still have some protection
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