EUR/USD showing exhaustion, possible big reversal.
Hello traders,
After the long uptrend, the EUR/USD pair is showing signs of exhaustion. First, it seems to be failing to make a new higher high, as seen on the latest candle. The RSI is starting to show a divergence (RSI is not making a new higher high on the latest candles).
I will be waiting until the 4H candle breaks the 20 moving average from the Bollinger bands with a clear bearish momentum candle in order to enter (at least this is my strategy as I need clear signals). I do not try to enter on the highest possible point, as I am not a very risky trader. I prefer waiting for clear confirmations and sacrifice some pips in order to avoid big losses.
What is your idea on this? Leave a comment below :)
Ray
After the long uptrend, the EUR/USD pair is showing signs of exhaustion. First, it seems to be failing to make a new higher high, as seen on the latest candle. The RSI is starting to show a divergence (RSI is not making a new higher high on the latest candles).
I will be waiting until the 4H candle breaks the 20 moving average from the Bollinger bands with a clear bearish momentum candle in order to enter (at least this is my strategy as I need clear signals). I do not try to enter on the highest possible point, as I am not a very risky trader. I prefer waiting for clear confirmations and sacrifice some pips in order to avoid big losses.
What is your idea on this? Leave a comment below :)
Ray
Comment:
Candles are almost approaching the 20 SMA. Once it breaks out and it closes below the candle, I will open the trade and go short.
Comment:
Bearish 4H candle is also almost breaking the neckline of the Head-and-Shoulders pattern. This seems promising so far ...