Happy Monday traders. Lets get this week off to a good start. Jumping straight into the markets, EURUSD caught my eye in particular as a potential early pair to get into early this week.
First indication for me is the daily candle closure below the daily resistance level at 1.2340. Looking deeper on the 4 hour timeframe, we see a lower high and lower low created. Using the Moving Averages to identify the trend of the market, the 100 MA crossed over the 200 MA with the area in between the MA's acting as a strong resistance area. This is a very solid indication of the bears waking up reading to tear apart the bulls. With a fib retracement we can see price testing the 0.5 area multiple times and failing to break through, pushing lower as the bullish momentum starts to die off. Finally RSI shows the pair is heavily overbought which again, is in favor of a bearish trend.
Thank you for taking the time to read my analysis. Feel free to drop a comment letting me know what you think about my bearish prediction.
First indication for me is the daily candle closure below the daily resistance level at 1.2340. Looking deeper on the 4 hour timeframe, we see a lower high and lower low created. Using the Moving Averages to identify the trend of the market, the 100 MA crossed over the 200 MA with the area in between the MA's acting as a strong resistance area. This is a very solid indication of the bears waking up reading to tear apart the bulls. With a fib retracement we can see price testing the 0.5 area multiple times and failing to break through, pushing lower as the bullish momentum starts to die off. Finally RSI shows the pair is heavily overbought which again, is in favor of a bearish trend.
Thank you for taking the time to read my analysis. Feel free to drop a comment letting me know what you think about my bearish prediction.