EURUSD Strategic View: Dropping perfectly from our selling area
Sell below 1.1300. Stop loss at 1.1380. Take profit at 1.1080.
Reason for the trading strategy:
Price has reached our selling area and is reacting off it perfectly. This week we remain bearish below major resistance at 1.1300 (Multiple Fibonacci extensions, Elliott wave theory, horizontal swing high resistance, bearish divergence) for a further drop towards 1.0930 support (Fibonacci retracement, horizontal pullback support).
Stochastic (89,5,3) is seeing major resistance below the 95% level where we expect a drop from soon. We also see bearish divergence vs price signalling that a drop is impending.
Reason for the trading strategy:
Price has reached our selling area and is reacting off it perfectly. This week we remain bearish below major resistance at 1.1300 (Multiple Fibonacci extensions, Elliott wave theory, horizontal swing high resistance, bearish divergence) for a further drop towards 1.0930 support (Fibonacci retracement, horizontal pullback support).
Stochastic (89,5,3) is seeing major resistance below the 95% level where we expect a drop from soon. We also see bearish divergence vs price signalling that a drop is impending.