EUR/USD: Potential Bearish Continuation


Published On: 31 May 2024, 6:10 PM | Jun Yuan Kwong, Dealer

Key Entry Price Pivot(s):
  • 1.0787
Recommended Trade:
  • Short at level 1.0787
  • Take Profit at 1.0692
  • Stop loss at 1.0900
Alternative Case:
  • Long at level 1.0900
  • Take profit at 1.0990
  • Stop loss at 1.0787
Remarks:
  • Observing the daily chart of the EUR/USD, we can see that the price is in a downtrend channel.
  • Currently, the price is rejecting the channel’s resistance, and a micro double top has formed. This suggests the price may extend towards the channel’s support.
  • A significant bearish bar formed on May 29th, but there was no follow-through bar the next day. The price experienced a 50% pullback to the previous bearish bar when it hit a support level at 1.0800.
  • We can potentially look for a short trade if the price breaks the support level at 1.0800 and the low of the previous bull bar on the May 30th.

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