EURUSD

Price is clearly moving around the daily resistance and expects a push to the downside from here. From the daily perspective, the price is testing the 50% of FIB, if it shows some rejection from here, it may see a push to the downside from here and complete the impulse correction and new impulse pattern.

From the COT perspective, hedge fund keeps closing massive amount of short position and adding some long positions for few weeks, and they finally adding some short positions on EUR in this week, meaning that the increase of long positions is for the upside retracement and they started to accumulate some short positions when the retracement, in order to sell at a higher price.

It is best for us to monitor the price action in the 4h time-frame inside the daily resistance area if there has shown any confirmation inside this area, then we can take a sell position with a good risk-reward.

Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
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