So yesterday I have successfully shorted EUR/USD, see for yourself !
But I think I had missed the bigger picture..
Why? Let me Explain.
So as may know, I was a short term bull on EXY and the EUR/USD pair after it has broke out of Cup and handle pattern.
The pattern.
But now the 4H time frame has printed a legit Head and Shoulders bearish formation, which usually acts a Trend Changing formation.
Technical aspect of the chart
If we look at 1Daily chart, we can see three things. 1. Daily Dojo Candle 2. RSI struggling to find support at key bullish continuation level of 60. 3. MACD Selling wave has started.
Looking at current chart in front us, 4H. 1. EMA's 20 and 50 are very near, giving a signal of possible trend change and increased volume! 2. RSI is holding at last neutral level 40, below it's bearish. 3. MACD has given sign of a continuation.
And how about DXY, is it in downtrend?
Yes, I agree DXY is still for me considered as downtrend Index, but it looks like it's gaining some bull power and showing a potential try to make a trend change.
And how are you going to trade this?
I am thinking about putting a sell limit somewhere around 1.17190, which would mean a lower low, that automatically brings sell volume , see the Trade on the chart.
That's it friends, please, if you enjoyed this Analysis and you would like more, let me know by Agreeing with this Idea, of course only if you agree haha.