KEEPING THINGS SIMPLE ON THE EURUSD
(1 day, log scale)
-price was meeting resistance (horizontal & downward sloping trendline), has turned
-the April/May negative divergence worked out
-at the time, RSI was just slightly at overbought levels (I would prefer a larger RSI overbought reading for a start of an uptrend).
-we have a slightly lower high, that by itself counted as a negative for EURUSD
-RSI now turned to the downside, and it has now reached the maximum low of any RSI bull range 40-70
BUT:
- the downtrend has not proven wrong
- the utrend is broken on the daily
- the gap is about filled on the currently developing retest
In all & until proven otherwise: EURUSD on the daily switched from neutral to bearish, there's no other way to look at it. Surely, it will bounce off here and there , but all action looks to the downside. First target: 1.0820, thereafter (after a short rebound) possibly a retest of 1.0450.
(1 day, log scale)
-price was meeting resistance (horizontal & downward sloping trendline), has turned
-the April/May negative divergence worked out
-at the time, RSI was just slightly at overbought levels (I would prefer a larger RSI overbought reading for a start of an uptrend).
-we have a slightly lower high, that by itself counted as a negative for EURUSD
-RSI now turned to the downside, and it has now reached the maximum low of any RSI bull range 40-70
BUT:
- the downtrend has not proven wrong
- the utrend is broken on the daily
- the gap is about filled on the currently developing retest
In all & until proven otherwise: EURUSD on the daily switched from neutral to bearish, there's no other way to look at it. Surely, it will bounce off here and there , but all action looks to the downside. First target: 1.0820, thereafter (after a short rebound) possibly a retest of 1.0450.
