EUR/USD Daily Analysis: Price rose on weak volume yesterday in line with the short-term trend, challenging 1.3680 for the past two candles. The short-term trend is still bullish (more so after easily dispatching 1.3640) but appears top-heavy and overbought at its current level. The bearish RSI divergence we acted on yesterday never cleared, meaning the current uptrend is without conviction.
Our Preferred Trades*: Our primary preference is to trade with the short-term trend so we will look to get long on a dip to between 3570-3610 with bullish candlestick confirmation, targeting another rise to 1.37.
We will also be looking for another short opportunity around 3680 if the bearish RSI divergence continues, targeting a drop down to that 3570-3610 range.
Yesterday’s EUR/USD SwingPRO Signal Result: Our SL was hit for a 40.1 pip loss.
Today’s SwingPRO Signal: Long on resistance breaks between 3570-3610 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.
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