(Sell) EURUSD Technical Analysis for April 25, 2018
Hello Traders,
From our previous preview of this pair, all we needed were lower lows and that we got as price action shows. As you can see, not only is there is a stochastic sell signal in the weekly chart but bears are capitalizing on that clear bearish divergence following an over-extension/EURO over-valuation by week ending February 2. However, that’s not all.
There is a bear break out below the main support trend line in the weekly chart. This therefore means the only way of turning a decent profit is to trade with the trend and that means taking short positions in lower time frames.
If bear momentum is strong, assuming we see a divergence of %k and %d in the weekly chart in the coming sessions, then we can enter shorts right away without expecting prices to bounce back as they do whenever there is a break out like this.
In the 4HR chart, sellers are on the upper hand. Despite earlier bull pressure following a stochastic buy signal and a confirming candlestick, prices are fading that move. Conservative traders can wait for a break below 1.218 or this week’s lows before initiating sells but if you want to short now then you can with stops at 1.2250.
Because of this inclination, my EURUSD trade plan will be as follows:
Sell: 1.221
Stops: 1.225
Take Profit: 1.16
Let me know what you think. Have a good trading day!!!
This Analysis was first posted at Forex.Today by Dalmas Ngetich
From our previous preview of this pair, all we needed were lower lows and that we got as price action shows. As you can see, not only is there is a stochastic sell signal in the weekly chart but bears are capitalizing on that clear bearish divergence following an over-extension/EURO over-valuation by week ending February 2. However, that’s not all.
There is a bear break out below the main support trend line in the weekly chart. This therefore means the only way of turning a decent profit is to trade with the trend and that means taking short positions in lower time frames.
If bear momentum is strong, assuming we see a divergence of %k and %d in the weekly chart in the coming sessions, then we can enter shorts right away without expecting prices to bounce back as they do whenever there is a break out like this.
In the 4HR chart, sellers are on the upper hand. Despite earlier bull pressure following a stochastic buy signal and a confirming candlestick, prices are fading that move. Conservative traders can wait for a break below 1.218 or this week’s lows before initiating sells but if you want to short now then you can with stops at 1.2250.
Because of this inclination, my EURUSD trade plan will be as follows:
Sell: 1.221
Stops: 1.225
Take Profit: 1.16
Let me know what you think. Have a good trading day!!!
This Analysis was first posted at Forex.Today by Dalmas Ngetich