Explosive fall is about to begin . Demand decrease @ $0.745 . A lot of buyers trapped @ $0.738 just above support. Because Money Flow is down, our Odds are for short. 1:6 risk:reward trade (take half when 1x profit)
EURUSD is preparing for a potential big drop. Sellers found @ :
- 1.1250 resistance
- 50% fibonacci retracement of prior swing
Our entry is based on the 123 psichological pattern. This trade carry good reward - 1:14 risk:reward , will become at least 1:7 risk:reward after we will cover- but we should cover after ...
We have a confluence of 38% Fibonacci retracement and Declining trendline resistance wich is part of a falling wedge wich develop. This trade should be managed aggresively due the reversal chart pattern so consider to cover when price is near lower line of pattern.
We have multiple technical confluences that show increasing demand @ 70$ (see the chart).
It is too early and risky now to buy, we should stalk closely for evidence of buyers if they take control of trend.
I will stalk this pair in near future and will provide aditional updates.
Distribution phase, investors lose their
enthusiasm for EUR.
They are sceptical regarding the evolution of EUR
This congestions below support - now resistance- the little red lines -
can result in abrupt decline long term.
It is very probable that the BRexit vote for YES will be the catalyst for the Big Fall.