This analysis shows EURUSD in a multiple timeframe situation and points why we might expect a 600 pips movement in the near term. This analysis only available for Tflow® graduates
Weekly Trendline and Fibonacci Retracement shows price near to resistance
Indicators show Bearish Divergence
Although I hardly use indicator, but I do check them always to provide additional confirmation. Both MACD and Stochastic shows bearish divergence – this is an indication that EURUSD might be heading down. What is required is a price confirmation to this bearish divergence
Daily chart shows trend change
On daily chart, we see a double top, with second top shown a potential HS pattern.
This suggests that trend reversal might be in placed. Friday closed below previous low created. This is a bearish sign.
A retracement back to resistance in the form of 1234 in lower timeframe (H1/H4) presents us with usual setup for a bearish stance.
Support lies at 13310-60. However I’m looking at the far support 12950 as the final frontier.
Update on 20 Jan 1.56pm
EURUSD opened and traded negatively. On day close, it has closed below previous low, thus confirming the bearish stand.
Attached chart shows possible resistance zone that EURUSD might retrace to and get resisted. Most important is always look for a 1234 pattern as taught.