EUR/USD: OVERSOLD - Will continue or reverse?
Prices dropping for third consecutive day, close in three months low (1.0800).
• Dow-pattern- higher tops and higher bottoms, (B1-T1-B2-T2).
• Price is currently trading below the valid uptrend line. (sell signal)
• Bearish Cross MA10 Under MA20
RSI:
Momentum oscillator become oversold and remain so in a strong down trend. RSI moved from overbought to oversold in the end of October.
Prices are trading below the resistance level (R1) at 1.1100 the 50% Fib retracement level and the SMA200.
Therefore, in case that the pair is trading below the trend line, we will recommend SHORT POSITIONS for the no position holders on EUR/USD. Take profit at 1.0550-1.0500 (S2). Stop loss should be a bit above the resistance level-R1, thus the stop loss is at 1.1170.
For SHORT-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.
On the other hand, with a daily close ABOVE the R1- SMA200, we will recommend LONG positions. Take profit at 1.1500-1.1870 (R3-R4). Stop loss should be a bit below the support level- S1, thus the stop loss is at 1.0800.
• Dow-pattern- higher tops and higher bottoms, (B1-T1-B2-T2).
• Price is currently trading below the valid uptrend line. (sell signal)
• Bearish Cross MA10 Under MA20
RSI:
Momentum oscillator become oversold and remain so in a strong down trend. RSI moved from overbought to oversold in the end of October.
Prices are trading below the resistance level (R1) at 1.1100 the 50% Fib retracement level and the SMA200.
Therefore, in case that the pair is trading below the trend line, we will recommend SHORT POSITIONS for the no position holders on EUR/USD. Take profit at 1.0550-1.0500 (S2). Stop loss should be a bit above the resistance level-R1, thus the stop loss is at 1.1170.
For SHORT-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.
On the other hand, with a daily close ABOVE the R1- SMA200, we will recommend LONG positions. Take profit at 1.1500-1.1870 (R3-R4). Stop loss should be a bit below the support level- S1, thus the stop loss is at 1.0800.
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.