EURUSD may begin to pull-back?
Updated
Good Evening Traders,
I am not big on looking for trend reversals or draw back trades, but the EURUSD may be setting up for a significant correction. I believe the ECB rate decision and following press conference will be the catalyst that begins the draw-back. It appears almost certain the ECB will provide additional relief and stimulus relating to COVID-19. The question is exactly when this occurs and is announced. I anticipate the press conference having a more dovish tone due to this.
From a technical view, MACD is beginning to diverge from the Price Chart on the 8H. Price has blown by previous Bearish Divergence signals, but price appears to be at a stronger resistance and the current momentum may be slowing due to the upcoming rate decision. On the RSI, a double top is forming on the 8H in Oversold territory. Last time we saw a double top on the 8H in Oversold territory was at the beginning of March prior to the major sell-off that occurred. I do not believe the current sell-off would be nearly as significant, but we are seeing the same signals. On the 3H, Bearish Divergence was confirmed on the MACD/Price Chart so the 8H is likely to follow suit.
Thanks for reading. If you liked my analysis, please give me a follow.
*The above is not investment advice but simply my analysis of the current market conditions*
I am not big on looking for trend reversals or draw back trades, but the EURUSD may be setting up for a significant correction. I believe the ECB rate decision and following press conference will be the catalyst that begins the draw-back. It appears almost certain the ECB will provide additional relief and stimulus relating to COVID-19. The question is exactly when this occurs and is announced. I anticipate the press conference having a more dovish tone due to this.
From a technical view, MACD is beginning to diverge from the Price Chart on the 8H. Price has blown by previous Bearish Divergence signals, but price appears to be at a stronger resistance and the current momentum may be slowing due to the upcoming rate decision. On the RSI, a double top is forming on the 8H in Oversold territory. Last time we saw a double top on the 8H in Oversold territory was at the beginning of March prior to the major sell-off that occurred. I do not believe the current sell-off would be nearly as significant, but we are seeing the same signals. On the 3H, Bearish Divergence was confirmed on the MACD/Price Chart so the 8H is likely to follow suit.
Thanks for reading. If you liked my analysis, please give me a follow.
*The above is not investment advice but simply my analysis of the current market conditions*
Note
*EDIT: RSI on 8H chart should read Overbought not Oversold*My apologies for the typo
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.