Hi Traders! EURUSD forecast update and follow up is here. On January 21st I shared this “EURUSD Sell Idea After Bearish Trend Pattern” post in trading view. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea:
EURUSD H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my view was bearish here and I was expecting the price to move lower further until the strong resistance zone holds. After the bearish trend pattern generally, we may expect a correction to happen in the form of a range or double wave. Here we had a correction in the form of double wave to the upside but the price was holding below the strong resistance zone. We also had a bearish divergence that had formed between the first high that has formed on 19th January 2021 and the second high that has formed on 21 January 2021 based on the MACD indicator. The price then moved lower and broke below the uptrend line, the price then retested this breakout, and then it broke below most recent uptrend line. We may consider these as facts provided by the market supporting the bearish view, also there were no signs opposing this bearish view. The price then moved further lower delivering around 180 pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
You can see this clearly in the image below.
Currently, on the H1 chart, we have a potential bullish divergence in play, this is something that we need to pay attention to. As I always say when you see opposite evidences like this, you should consider managing your trade and secure your profits (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
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To your success,
Vladimir Ribakov
Certified Financial Technician
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