BluetonaFX - EURUSD Potential Evening Star Opportunity
Hi Traders!
There is a potential Evening Star pattern forming on the EURUSD 1D chart, which suggests to us that the bullish momentum over the past week is possibly slowing down.
We have highlighted on the chart the doji candle that formed this past Friday, which is a warning sign that the momentum has run out of steam and bulls might start profit-taking on their long positions.
For the evening star pattern to complete, we are looking for a confirmation signal, which is a break and a close below the doji candle at 1.12041; we must get this as this will be our confirmation for entry. The RSI indicator value is currently around 74, which also suggests that the market is possibly overbought and momentum is slowing down.
If we get this, we have an exit target at 1.11110, so this is a fantastic risk-reward setup.
As we are against the trend, stops should be tight; if the evening star pattern fails and the bullish momentum continues, then we will look for buying opportunities to the upside.
Please do not forget to like, comment, and follow, as your support helps us greatly.
BluetonaFX
There is a potential Evening Star pattern forming on the EURUSD 1D chart, which suggests to us that the bullish momentum over the past week is possibly slowing down.
We have highlighted on the chart the doji candle that formed this past Friday, which is a warning sign that the momentum has run out of steam and bulls might start profit-taking on their long positions.
For the evening star pattern to complete, we are looking for a confirmation signal, which is a break and a close below the doji candle at 1.12041; we must get this as this will be our confirmation for entry. The RSI indicator value is currently around 74, which also suggests that the market is possibly overbought and momentum is slowing down.
If we get this, we have an exit target at 1.11110, so this is a fantastic risk-reward setup.
As we are against the trend, stops should be tight; if the evening star pattern fails and the bullish momentum continues, then we will look for buying opportunities to the upside.
Please do not forget to like, comment, and follow, as your support helps us greatly.
BluetonaFX
After the break and close below the Doji candle, market continue to push to the downside.
1.11110 target complete.