anyoption
Short

EUR/USD: OVERSOLD - Will continue or reverse?

FX_IDC:EURUSD   EURO / US DOLLAR
42 0 5
Prices dropping for third consecutive day, close in three months low (1.0800).
• Dow-pattern- higher tops and higher bottoms, (B1-T1-B2-T2).
• Price is currently trading below the valid uptrend line. (sell signal)
Bearish Cross MA10 Under MA20
RSI:
Momentum oscillator become oversold and remain so in a strong down trend. RSI moved from overbought to oversold in the end of October.
Prices are trading below the resistance level (R1) at 1.1100 the 50% Fib retracement level and the SMA200.
Therefore, in case that the pair is trading below the trend line, we will recommend SHORT POSITIONS for the no position holders on EUR/USD             . Take profit at 1.0550-1.0500 (S2). Stop loss should be a bit above the resistance level-R1, thus the stop loss is at 1.1170.
For SHORT-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.
On the other hand, with a daily close ABOVE the R1- SMA200, we will recommend LONG positions. Take profit at 1.1500-1.1870 (R3-R4). Stop loss should be a bit below the support level- S1, thus the stop loss is at 1.0800.
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