Considering the exhaustion in Euro_ rally both on technical and fundamental basis, I prefer to position myself on the short side, watching for a breakout downwards.
I think the price will test 1.0670 again. This level became a critical point as it is the neckline of the top SHS_ formation and it corresponds to 23.6% Fibo retracement of 1.03-1.21 rally.
Looks like the next big move is to begin shortly. Bollinger band contraction signals this, a new Bollinger bubble shall form to relax the contraction.
Comparing with the beginning of Euro_ rally in_April, technical tools show similar formation today. MA of volume indicator has fallen back to the level of_April. EMA 10-25-50 lines kissed each other again after six months.
Regarding the direction, I take short position based on longer time frame indications. Also considering the lack of market appetite to buy Euro_ further.
Indicators give mixed signals for the direction:
RSI is within an ascending triangle, after Friday’s close approaching to test the lower boundary once again. (No divergence between RSI and the price.)
Stochastic points upwards to touch level 80.
Momentum is at zero level again, descending from above and making lower highs since August.
MACD fast and slow lines are moving parallel to each other, trying to set a direction for diverging.
CCI is moving on an ascending line, again trying to break the support at zero level.
I think the price will test 1.0670 again. This level became a critical point as it is the neckline of the top SHS_ formation and it corresponds to 23.6% Fibo retracement of 1.03-1.21 rally.
Looks like the next big move is to begin shortly. Bollinger band contraction signals this, a new Bollinger bubble shall form to relax the contraction.
Comparing with the beginning of Euro_ rally in_April, technical tools show similar formation today. MA of volume indicator has fallen back to the level of_April. EMA 10-25-50 lines kissed each other again after six months.
Regarding the direction, I take short position based on longer time frame indications. Also considering the lack of market appetite to buy Euro_ further.
Indicators give mixed signals for the direction:
RSI is within an ascending triangle, after Friday’s close approaching to test the lower boundary once again. (No divergence between RSI and the price.)
Stochastic points upwards to touch level 80.
Momentum is at zero level again, descending from above and making lower highs since August.
MACD fast and slow lines are moving parallel to each other, trying to set a direction for diverging.
CCI is moving on an ascending line, again trying to break the support at zero level.