I'm entering a short position of 4 lots on 
EURUSD at 1.0865. This trade setup is based on my analysis of recent price action and key support levels. If we break below 1.0827, I believe this will confirm that the top for EURUSD is finally in, signaling a strong bearish trend.
Trade Details:
Entry: 1.0865 (Short position)
Confirmation Level: 1.0827 (Break below this to confirm downtrend)
Target: 1.0538 (-1.618 Fibonacci extension)
Technical Analysis:
Entry Point (1.0865): This level represents a key resistance where recent price action has shown signs of selling pressure. Entering at this point allows us to position ourselves ahead of a potential breakdown.
Confirmation Level (1.0827): This is a critical support level that is the .50 fib level of the recent breakout. A decisive break below this level will indicate that bearish momentum is gaining strength, confirming the downtrend.
Target (1.0538): The -1.618 Fibonacci extension from the most recent breakout of structure suggests this as a logical target for the downward move. This level has historical significance and could act as a strong support where the price may stabilize or reverse.
Recent Rally Peak: It appears we are currently at the peak of a sizable rally from 1.06. This rally has driven theEURUSD up to our second entry point, and the momentum appears to be weakening, suggesting a potential reversal is imminent.
Supporting Factors:
Bearish Momentum: The recent price action shows lower highs, indicating a bearish trend.
Economic Indicators: Recent economic data from the Eurozone and the U.S. suggest a potential divergence in monetary policy, favoring a stronger USD $DXY.
Market Sentiment: Current market sentiment appears to be risk-off, which typically benefits the USD as a safe-haven currency.
Eurozone Rate Cuts: The Eurozone is projected to cut interest rates in June. This potential rate cut will likely weaken the euro further and be beneficial to the USD
DXY , adding to the bearish case for EURUSD .
U.S. Interest Rate Hike: Additionally, I believe the U.S. will raise interest rates by the end of the year. This expected rate hike would further strengthen the USDDXY , adding downward pressure on EURUSD .
EURUSD at 1.0865. This trade setup is based on my analysis of recent price action and key support levels. If we break below 1.0827, I believe this will confirm that the top for EURUSD is finally in, signaling a strong bearish trend.Trade Details:
Entry: 1.0865 (Short position)
Confirmation Level: 1.0827 (Break below this to confirm downtrend)
Target: 1.0538 (-1.618 Fibonacci extension)
Technical Analysis:
Entry Point (1.0865): This level represents a key resistance where recent price action has shown signs of selling pressure. Entering at this point allows us to position ourselves ahead of a potential breakdown.
Confirmation Level (1.0827): This is a critical support level that is the .50 fib level of the recent breakout. A decisive break below this level will indicate that bearish momentum is gaining strength, confirming the downtrend.
Target (1.0538): The -1.618 Fibonacci extension from the most recent breakout of structure suggests this as a logical target for the downward move. This level has historical significance and could act as a strong support where the price may stabilize or reverse.
Recent Rally Peak: It appears we are currently at the peak of a sizable rally from 1.06. This rally has driven the
EURUSD up to our second entry point, and the momentum appears to be weakening, suggesting a potential reversal is imminent.Supporting Factors:
Bearish Momentum: The recent price action shows lower highs, indicating a bearish trend.
Economic Indicators: Recent economic data from the Eurozone and the U.S. suggest a potential divergence in monetary policy, favoring a stronger USD $DXY.
Market Sentiment: Current market sentiment appears to be risk-off, which typically benefits the USD as a safe-haven currency.
Eurozone Rate Cuts: The Eurozone is projected to cut interest rates in June. This potential rate cut will likely weaken the euro further and be beneficial to the USD
DXY , adding to the bearish case for EURUSD .U.S. Interest Rate Hike: Additionally, I believe the U.S. will raise interest rates by the end of the year. This expected rate hike would further strengthen the USD
DXY , adding downward pressure on EURUSD .Trade active
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Note
This is going to fall off a cliff next week.Trade active
Trade active
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Note
Seems like this trade is taking a bit longer than anticipated but I'm still not worried. Taking small profits here and there. Full move before a CHoCH could be sub 1.04.Trade active
Trade active
Well here we go again
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.