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EURUSD D1(Daily) Chart Analysis – Key Resistance Zone, Stochastic Oscillator
On the daily chart, we have a strong bullish move and, while measuring the first wave using the Fibonacci expansion tool we could see that the price which is moving higher has currently reached the key resistance zone formed by the 100% Fibonacci expansion level of the first wave. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as evidence of bearish pressure. Until this key resistance zone holds my short term view remains bearish here and I expect the price to move lower further. We may now move down to one more timeframe lower and look for evidences supporting this short term bearish view.
EURUSD H4(4 Hours) Chart Analysis – Bearish Divergence, Two Key Support Zones
On the H4 chart, the price which is moving higher has created a bearish divergence between the first high that has formed at 1.14727 and the second high that has formed at 1.15727 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also while measuring this strong bullish move we have two key support zones that has formed. The first key support zone is formed based on the 23.6% – 38.2% Fibonacci retracement levels of the strong bullish move. The second key support zone is formed based on the 50% – 61.8% Fibonacci retracement levels of the strong bullish move. So based on all this I expect short term bearish moves to happen now towards the key support zones shown in the image below(marked in green).
Technical Analysis & Forecast Summary
EURUSD D1(Daily) Chart Analysis
- Key Resistance Zone, Stochastic Oscillator
EURUSD H4(4 Hours) Chart Analysis
- Bearish Divergence, Two Key Support Zones
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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