EUR/USD Short Opportunity
Updated
Looking at the 4 hour chart here there are several things I have charted that make my decision for looking for short entries more favorable for myself. Personally, I use my own scripts and scalp intraday sessions and zones, but this analysis allows me to ignore the bullish side of things until otherwise seeing a reason to reverse my bias.
Several news factors played into last weeks price action and on the 4hr you can see that we are finally breaching into that large gap that was created the beginning of April where a large amount of shorts came into the market off of a strong DXY (US Dollar) and I give credit to the push on the Euro this week to the strong earnings on the stocks side of things in the USA. (US30, NAS, SP500) This leading to the dollar softening or possibly profit taking? Hard to call those things but I see this a great entry opportunities for shorts because as you see by the first technical I will go over here, that gap has a fibonacci retracement that has been respected at the .50 level.
It also ties in with a 4hr long term trend line that this would be the 5th tap into, which can sometimes mean a 'weaker' trend due to the fact it keeps getting tapped into shows there is interest, however in this scenario you also see a parallel channel that stays respected for a good amount of time on the 4hr. I see all these factors playing into the Bishop RSI v2 which takes 6 intraday timeframes and takes their RSI value and applies a FRAMA calculation to it and provides it as one single line. This has given me great accuracy on picking tops and bottoms or weakening trends in this scenario.
If we have some bullish dollar movement and can continue on our bearish long term trend on the EUR/USD pair here, we can see a 1% retracement this week (very reasonable and realistic) and it would line up with support levels which would most likely be targeted IF the pair goes bearish. Thats the scoop on it as of now!
Several news factors played into last weeks price action and on the 4hr you can see that we are finally breaching into that large gap that was created the beginning of April where a large amount of shorts came into the market off of a strong DXY (US Dollar) and I give credit to the push on the Euro this week to the strong earnings on the stocks side of things in the USA. (US30, NAS, SP500) This leading to the dollar softening or possibly profit taking? Hard to call those things but I see this a great entry opportunities for shorts because as you see by the first technical I will go over here, that gap has a fibonacci retracement that has been respected at the .50 level.
It also ties in with a 4hr long term trend line that this would be the 5th tap into, which can sometimes mean a 'weaker' trend due to the fact it keeps getting tapped into shows there is interest, however in this scenario you also see a parallel channel that stays respected for a good amount of time on the 4hr. I see all these factors playing into the Bishop RSI v2 which takes 6 intraday timeframes and takes their RSI value and applies a FRAMA calculation to it and provides it as one single line. This has given me great accuracy on picking tops and bottoms or weakening trends in this scenario.
If we have some bullish dollar movement and can continue on our bearish long term trend on the EUR/USD pair here, we can see a 1% retracement this week (very reasonable and realistic) and it would line up with support levels which would most likely be targeted IF the pair goes bearish. Thats the scoop on it as of now!
Note
Respecting the 1% drop forecast so far, retracing into previous resistance today poses for good short opportunities.
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