Observation at first supp/res level. Short, but not here.
EURUSD has lost all of its bullish momentum. The divergence signals were pretty clear around 1,1950-1,2050. However the main question is what are the odds now?
- Ichimoku is changing to neutral with minor bearish bias: weak bearish Tenkan/Kijun cross above Kumo, Price is below Tenkan and Kijun, and Chikou is about to cross past candles.
- Price is reaching top of key supp/res zone at 1,1730. As there is a thick Kumo below the spot price and future Kumo is thick and not yet close to a cross down, I think this is not a good risk/reward level to chase shorts. If market spikes back closer to Tenkan or Kijun, then in 1,1845 - 1,1910 range you can look for a sell signal.
- MACD is neutral, it shows only bullish consolidation as it is located above zero mid line.
- EWO has its first minor warning: ticks into red. This also suggests that better risk/reward trade from now will be selling spikes.
- Heikin-Ashi is swing bearish, but as price is getting close to 100 days WMA at 1,1700 and haOscillator is at its low, I think we'll see some consolidation or minor pull back next, rather than a straight breakdown and more immediate selloff.
Strategy:
1. If you are short, hold it, maybe sell some short dated cover puts.
2. If you are flat, then look for a sell opportunity in spikes to 1,1840-1,1910.
3. If you are still long, then you are very stupid. Anyway, you may have one more chance to get out a bit higher.
4. If you are trying to catch a bottom and opening longs now, then you are a gambler with no clue about trading risk management, odds, etc.... well, let's say you are a harmless idiot, but don't worry, Darwin's theory will take care of you in the long run :-)
- Ichimoku is changing to neutral with minor bearish bias: weak bearish Tenkan/Kijun cross above Kumo, Price is below Tenkan and Kijun, and Chikou is about to cross past candles.
- Price is reaching top of key supp/res zone at 1,1730. As there is a thick Kumo below the spot price and future Kumo is thick and not yet close to a cross down, I think this is not a good risk/reward level to chase shorts. If market spikes back closer to Tenkan or Kijun, then in 1,1845 - 1,1910 range you can look for a sell signal.
- MACD is neutral, it shows only bullish consolidation as it is located above zero mid line.
- EWO has its first minor warning: ticks into red. This also suggests that better risk/reward trade from now will be selling spikes.
- Heikin-Ashi is swing bearish, but as price is getting close to 100 days WMA at 1,1700 and haOscillator is at its low, I think we'll see some consolidation or minor pull back next, rather than a straight breakdown and more immediate selloff.
Strategy:
1. If you are short, hold it, maybe sell some short dated cover puts.
2. If you are flat, then look for a sell opportunity in spikes to 1,1840-1,1910.
3. If you are still long, then you are very stupid. Anyway, you may have one more chance to get out a bit higher.
4. If you are trying to catch a bottom and opening longs now, then you are a gambler with no clue about trading risk management, odds, etc.... well, let's say you are a harmless idiot, but don't worry, Darwin's theory will take care of you in the long run :-)