Short

Selling overbought EUR/USD

Updated

RSI is in overbought conditions and H4 is showing RSI divergence when price made a higher high. An immediate target is 1.10750 with extension to 1.10420. This is a short term target as another rise to 1.1180 may occur afterwards where we can consider selling towards 1.09 (which is a long term target).

Note

Market has given a couple of hours for all sellers to put their positions in place and now we are slowly sliding down. Day traders can take partial profits now as well.

Note

Eur/Usd has hit 1.118 resistance retreated. H4 RSI divergence should allow the price to start going down pretty soon. I do not expect this today but rather by mid next week.

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1.118 resistance rejected the price and we are sliding down further even faster than expected. 1.108-1.107 support should stop the fall initially and that is another place to take partial profits.

1.105 should be strong enough to make a good bounce up again to 1.114-1.117 resistance for a further fall down. We had a very good profit selling the last two days and if you are a short term trader - now is a good time to close positions and look for a new entry higher next week.

Note

1.118-1.12 resistance area has rejected the price multiple time and is slowly going down. We are still within 1.1111 - 1.118 range (buy at the bottom, sell at the top) and that is a short term scalping range.

I am still committed to see 1.1075 support being touched with 1.105 in extension which should provide a quick bounce up.

On a short term horizon - breaking 1.12 - will move the price higher, breaking 1.11 - will make it go down with just temporary pullbacks and a final target of 1.09

Currently situation is very simple - I will hold my shorts until they close and if price breaks 1.12 - i will only observe price action with a possible sell at 1.1215 and 1.125.

Note

1.1111 support is holding and DXY is actually trying to get back above the broken trendline. Currently it is still below the trendline and since 1.1111 has not been broken - we could see the price going up tomorrow if it holds.

1.118-1.12 is a sell spot for me.

Otherwise 1.108-1.1075 will be touched where MA200, MA100 awaits.

Note

Partial profits can be taken again as we are close to target and we have high impact data coming in which may send price either way- to 1.117-1.12 or down to 1.107-1.104. Long term we are still on a bearish trend.

Trade closed: target reached

TP 1.1075 has just been hit and we can go an enjoy a profitable week. Nothing much is expected until January and it may just be scalping days ahead with low volumes. I wish everyone Merry Christmas and Profitable next year.

Erland

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