The EUR / USD finished last week higher on the back of economic data that was mostly in favor of the EUR.
However, this weekly rise of 0.29% is only a h correction that could be used to find short opportunities.
The overall economic conditions in the US are better than in the old continent, and the European Central Bank has announced a return to quantitative stimulus, while its Federal counterpart, despite the rate cut, is not in a hurry towards this trend, at least in the short term.
Technically it is very clear that the pair is trading below the trend line on the daily chart, and the 200-day SMA.
Now , on the 4 hour chart, the pair has touched strong resistance levels, I think it represents a good opportunity to go short
we have:
- 200 SMA
38.2% Fibonacci retracement at 1,1061.
Resistance lines for previous tops and lows between 1,1061 and 1,1071.
Notice that the Fibonacci correction and the resistance line at 1,1061 match.
Before the market opens The price is 1,1051.
Entry from these levels and target 1.1000 with stop loss above 1,1075 (neckline of reversal pattern double top).
Or target 1.0890 with a stop loss at 1,1140.
What do you think of this analysis? Please let me know.
Good trading for everyone.