Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
Previous post (1/27): EUR/USD's Bearish Outlook has Upside Risk...
- The EUR/USD is kicking off a decline this Friday staying below the 1.3757 high, and breaking below the 1.3640 support.
- The 1H RSI chart finally broke below 40 as well, and about to tag 30 for a bearish momentum breakout signal.
- The current target is 1.3540. A break below that opens up 1.34, and 1.3250.
- The 4H chart shows a strong bearish candle developing. A break below the recent rising trendline suggests a return to the 1.3250 base of the second rally that started Jan. 18.
- The RSI breaking below 40 in the 4H chart should confirm the bearish attempt in the short-term.
- We see in the daily chart that the Jan.17 candle was just as strong as the current, although the current one is relatively stronger than its adjacent ones.
- We should still see if the start of next week can retrace today's price action. Then we can have a better short entry point, and a tighter stop for this bearish outlook.
- If the retracement is more than 61.8% however, we might be in trouble. Otherwise, look for the test of 1.34 and possibly 1.3250 in the coming week.
Has the EUR/USD completed its correction rally, and onto a large downswing? We would love to hear from you.
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Fan Yang CMT
Chief Technical Strategist