Points to consider,
- resistance ( formation)
- Local support confluence
- below 50
- Stochastics buy cross
- below average
The resistance was established with an impulse sell off into local support, which is the current trade location. The local support has multiple confluences; a bounce into the range median is probable for a retest.
A confirmed retest will allow for a short entry with defined risk
The is below 50, showing weakness in the market as momentum shifts to the downside. Stochastics on the other hand is signalling a buy cross; an immediate bounce from local support is probable.
is currently below average where an initial influx is likely as this is a key trade location.
Overall, in my opinion, if EURUSD establishes a retest with declining , the probability of an impulse down is likely.
Price action will be important to monitor for a directional bias
What are your thoughts?
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“It is always the best discretion to let the market show us where it is going and just simply follow (this would be prudent), rather than predict where the market is going and place a position (this would be gambling).” -Anne-Marie Baiynd