EUR/USD Daily Analysis: We expect continued upward consolidation today as the trend analysis, both 4h and daily, remains bullish. However the oversold 4h chart, along with bearish 4h and daily divergence should provide resistance to the rise and we expect hard offers above 1.3900 should limit upside to 1.3905-1.3950 today.
Long-term Trend Analysis Chart
Our Preferred Trades*: Our preferred strategy would be to buy into dips toward 1.3950-1.3930 but the bearish divergence on the strength index is warning enough for us to stay out of the pair for now.
Yesterday’s EURUSD SwingPRO Signal Result: We closed out of our short before the weekend for a 25 pip loss.
Today’s SwingPRO Signal: Flat on bullish trend with overbought divergence.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
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