SOFRONOFX
Short

EURUSD |SQUEEZE| Simple Technical Analysis

FX:EURUSD   Euro / U.S. Dollar
EU has been in downtrend for the past 12 months and has created a falling wedge on the weekly indicating that bulls are getting stronger. Bulls have found some support at 1.1110 which was last tested in May 2017. staying on the weekly there is a 60 pip demand zone between 1.1110-1.1170 which we have dipped into 4 times since April 22nd, each time bull have defended the area forming pin bar rejection candles. For the bearish trend to continue we need a significant break of this area bringing the next weekly support into play (150 pips away) and then the next (300 points away).

On the daily we have triple bottom indicating that the downtrend is decelerating or may be over but technically this market is still bearish , so I suspect there is another leg down to the 1.1110 area and possibly a new low. I will only be considering longs once we get a significant break and close above 1.1220.

On the 4hr we have a head and shoulders (cleaner on the 1hr) which drove prices from the demand zone straight into resistance of 1.1180 which is also our 61.8 fib level giving us a high probably short setup with the trend.

This market may initially break to the downside enticing breakout traders to enter short then reverse to the upside so trade with caution and be ready for all eventualities.
Trade active: Triggered in at 1.1180
Comment: STOP amended to 1.1210
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