After taking profit on EURUSD longs, we are now looking to short EURUSD for a correction till the support. The structure on H4 has turned bullish but on the higher time frames, we are still bearish. Market tapped the 1.0770 resistance and begun to reject it. We will wait for it to form a double top at this level to take the short. Currently, market is also forming a lower low and lower high. The support level we will be targeting would be at 1.0580. We will also be eying the head and shoulders for the bearish move.

The ascending trendline has been broken out for sells. The candles have been validated by closing and opening below the trendline. After the breakout sell, we will be looking for the retracement towards the resistance level. This will confluence with the swing resistance level.

The golden retracement area of 75-78.6% is in confluence with the resistance level. This confluence willl build up the liquidity for the short sellers.

Both the EMA's are in bullish direction with the bullish death cross. We anticipate the breakout sells for the EMA's once the market starts to move in the bearish direction. Till then, we have to be vary of the EMA retest.

Both the oscillators are in a bullish region with the RSI and CCI being above the 50 and -35 level. The oscillators needs to narrow down towards the bearish side to confluence with the technical factors on prices. That being said, we will continue looking for shorts once market deepens towards the bearish region.

Fann breakout sells on EURUSD

Jun 07 2022