EUR/USD Daily Analysis: EUR did manage to rise yesterday (not much, but it did rise) to just under 1.3640, just touching overbought on the 4h charts in the process. That overbought reading, combined with a slight bearish RSI divergence this morning, and the weekly downtrend that has been going on for the past six weeks has us looking lower at these levels. Of course there is short-term bullish evidence that we are swimming against and definitely not blind to – first we saw several “rise and consolidates” last week off the bounce of 1.34750, making the short-term trend bullish. Second, the most recent consolidation is a loose ascending wedge, meaning we could see another rise to 1.3680, though we reckon 1.3700 will hold in these overbought conditions with little on the economic calendar today.
4h Chart
EUR/USD 2" title="EUR/USD 2" height="242" width="474">
Our Preferred Trades*: We have taken a short at 1.3636 with our SL @ 1.3676 (40 pips) and our TP @ 1.3556 (80 pips). We will tighten the SL as the trade moves into the profit (PRO alerts will be sent out).
Yesterday’s EUR/USD SwingPRO Signal Result: No SwingPRO trades taken yesterday to report on.
Today’s SwingPRO Signal: If we were not already short we would be looking to get short on a support break below 1.3680 with a TP of 80 and a SL of 50.
*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.
