EUR/USD Price Action Indicates Overbought!
- Why EUR/USD could turn to the downside?
EUR/USD continues to stay higher even if the price action shows a bearish divergence on the H4 chart. Still, I believe that only a drop somewhere below the 1.21 could announce a corrective phase.
The outlook is bullish, the rate moves in a minor range, so a breakout from this minor pattern decides the direction. The bearish needs a bearish strike to be able to drop again. The USD could be boosted by the US data if the figures beats expectations.
On the other hand, some poor figures reported by Durable Goods Orders, Core Durable Goods Orders, Personal Income, Personal Spending, Unemployment Claims, New Home Sales, or by the Revised UoM Consumer Confidence could lift EUR/USD
EUR/USD Bearish Reversal!
EUR/USD failed once again to stabilize above the upper median line (uml) of the ascending pitchfork developing a range between the 1.2271 and 1.2125 levels. A new higher high, breakout through 1.2271 signals further growth.
Dropping below the 1.2125 and under the median line (ml) of the ascending pitchfork could activate a sell-off, corrective phase. EUR/USD will turn to the downside and it will develop an important corrective phase only if the USDX jumps way higher in the next weeks.
- EUR/USD TRADING TIPS!
Buy a valid breakout (close, retest) through the 1.2300 psychological level and use the 1.24 level as an upside target.
Sell a bearish closure under 1.2100 with a potential downside target at 1.19 psychological level.
The material has been provided by InstaForex Company – www.instaforex.com