Good Evening Traders,
I am not big on looking for trend reversals or draw back trades, but the EURUSD may be setting up for a significant correction. I believe the ECB rate decision and following press conference will be the catalyst that begins the draw-back. It appears almost certain the ECB will provide additional relief and stimulus relating to COVID-19. The question is exactly when this occurs and is announced. I anticipate the press conference having a more dovish tone due to this.
From a technical view, MACD is beginning to diverge from the Price Chart on the 8H. Price has blown by previous Bearish Divergence signals, but price appears to be at a stronger resistance and the current momentum may be slowing due to the upcoming rate decision. On the RSI, a double top is forming on the 8H in Oversold territory. Last time we saw a double top on the 8H in Oversold territory was at the beginning of March prior to the major sell-off that occurred. I do not believe the current sell-off would be nearly as significant, but we are seeing the same signals. On the 3H, Bearish Divergence was confirmed on the MACD/Price Chart so the 8H is likely to follow suit.
Thanks for reading. If you liked my analysis, please give me a follow.
*The above is not investment advice but simply my analysis of the current market conditions*
I am not big on looking for trend reversals or draw back trades, but the EURUSD may be setting up for a significant correction. I believe the ECB rate decision and following press conference will be the catalyst that begins the draw-back. It appears almost certain the ECB will provide additional relief and stimulus relating to COVID-19. The question is exactly when this occurs and is announced. I anticipate the press conference having a more dovish tone due to this.
From a technical view, MACD is beginning to diverge from the Price Chart on the 8H. Price has blown by previous Bearish Divergence signals, but price appears to be at a stronger resistance and the current momentum may be slowing due to the upcoming rate decision. On the RSI, a double top is forming on the 8H in Oversold territory. Last time we saw a double top on the 8H in Oversold territory was at the beginning of March prior to the major sell-off that occurred. I do not believe the current sell-off would be nearly as significant, but we are seeing the same signals. On the 3H, Bearish Divergence was confirmed on the MACD/Price Chart so the 8H is likely to follow suit.
Thanks for reading. If you liked my analysis, please give me a follow.
*The above is not investment advice but simply my analysis of the current market conditions*
My apologies for the typo