Facts:
- Mid – term trend remains downward
- The upward correction stopped below the key resistance area
Recommendation:
Trade: Short position on EURUSD at market price
Target: 1.0675, 1.0580
Stop: 1.0825
Opinion: EURUSD has been trading in a downward move recently. Despite the dynamic upward correction the main sentiment prevails bearish. Looking at the H4 time frame, one can spot that the upward move stopped right below the key resistance area which is a result of previous price reactions, 38.2% Fibonacci retracement, as well as the upper limit of 1:1 structure. According to the classic technical analysis, as long as the price sits below the area near 1,08 USD, one should expect further declines. We recommend going short EURUSD at market price with two targets: 1.0675 and 1.0580. We also recommend placing a stop loss order at 1.0825. Source: xStation5
