As we have been taking and looking for a bullish move on EURUSD, and it kept dipping, we will now look for a short opportunity as market failed to reverse multiple times and is surely in a bearish market even on the higher time frames. We will be looking at an intraday trade on EURUSD, which will be shorting from the 1.0530. This area is a resistance level which has enough short orders for the market to grasp and continue moving down. Currently, EURUSD has been forming lower highs and lower lows. This structural formation would act as a catalyst for the market to be pushed down. 

There is a high probability that at the resistance level, market would be tapping the descending trendline and we may see a rejection of the market by forming a pinbar or a bearish engulfing. This rejection would be our short confirmation. The trendline would also be in confluence with the resistance level.

The golden retracement area of 75-78.6% is in confluence with the resistance level, which already has been aligned with the descending trendline. Having three technical factors will add as a confirmation for our trade.

Both the EMA's are in a bearish trend with a bearish death cross. The latest was the EMA 50 breakout sell which is awaiting its retest. This retest is due on the resistance level which has other technical factors combined with it. EMA 200, still stands above the resistance level and may not be tapped yet. 

Both the oscillators are in a bearish region and a bearish trend. The RSI is at 35 and CCI at -135. These values are based on the support level where the market may bounce off towards our area of short selling. The bearish divergence may be formed at the time when the market reaches our positioning. At that time, we shall see the oscillators probably in an over bought region.

Not going to fight the trend anymore

Vasl Capital

May 15 2022

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