EURUSD - Bearish, but the ultimate reversal will happen later
So Bulls had their fun to see px close to 1,40, although it was really short lived. What can we expect now?
Draghi hint something again. Promise. But is this really a 10-15 bps rate cut next month what matters? Nope. Expectations and positionning, and of course changing technicals on back of these are the only things what will decide.
Let's make a check list:
Daily: Slow Stoch and MACD are bearish now. So is DMI, but still with very low ADX.
Price crossed below Kijun sen, but still above the Kumo, and also the uptrend (wedge bottom) may give some final support to price. To see a real bearish reversal on EURUSD it has to first break the trend, then next break the Kumo, and third make a decisive lower low below 1,3680. And still you won't be late to short it, as naturally in every trend we see pull backs.
4 Hrs: Massive reversal move yesterday with some follow through today. Price is through all important supports, which are now act as resistances. But Slow Stoch is extremely oversold here.
Strategy: Start building long term short positions on every spike. Be patient and wait for the final reversal signal. It is never too late!
p.s.: by the way it worths to check EURJP! If you have not yet seen my post, you can find a link below.
Draghi hint something again. Promise. But is this really a 10-15 bps rate cut next month what matters? Nope. Expectations and positionning, and of course changing technicals on back of these are the only things what will decide.
Let's make a check list:
Daily: Slow Stoch and MACD are bearish now. So is DMI, but still with very low ADX.
Price crossed below Kijun sen, but still above the Kumo, and also the uptrend (wedge bottom) may give some final support to price. To see a real bearish reversal on EURUSD it has to first break the trend, then next break the Kumo, and third make a decisive lower low below 1,3680. And still you won't be late to short it, as naturally in every trend we see pull backs.
4 Hrs: Massive reversal move yesterday with some follow through today. Price is through all important supports, which are now act as resistances. But Slow Stoch is extremely oversold here.
Strategy: Start building long term short positions on every spike. Be patient and wait for the final reversal signal. It is never too late!
p.s.: by the way it worths to check EURJP! If you have not yet seen my post, you can find a link below.
