Euro / U.S. DollarShort
EURUSD Bearish market flow
The 1-month chart shows a bearish trend in the EUR/USD pair.
In July, the price approached the top of a major downtrend channel but quickly reversed in August. In September, the price broke through two significant swing lows from May and March, and made a CHOCH bear flow. In October, the price made a new low below the March low, rallied but failed to break the previous month's high, and subsequently fell back.
On the 4-hour chart, there was a rapid upward movement that reached overbought conditions.
This move cleared out buy-side liquidity and took out stop-loss orders for short positions.
The price then swiftly reversed, causing those who had gone long to close their orders, adding to the downward momentum.
You expect to see more bearish market flow, especially with only 2 days left in the month.
You anticipate higher volatility as institutional investors close out their October orders.
Technical Indicators:
On the 4-hour chart, there's a significant swing low at 1.0449, which is crucial for the continuation of the downtrend.
The daily chart indicates a bear flag formation with price on the lower side of the range.
The MACD is below the midline with decreasing green bars.
The RSI is flat below the midline at 47 1/4.
The weekly chart also supports a bearish outlook.
The RSI is sloping down and reads 35 9/16.
The MACD is under the signal line, and both are below the midline.
In summary, the technical analysis suggests a bearish bias for EUR/USD. The price action, lower timeframe, and technical indicators all indicate a downward trend. However, it's essential to remember that the foreign exchange market can be influenced by various factors, including economic data, geopolitical events, and central bank policies, which may also impact price movements. Therefore, it's advisable to consider both technical and fundamental analysis when making trading decisions.
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Disclaimer
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discord.gg/a7sfTVkgxc
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
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.