We had taken a short on EURUSD earlier. Now, its just in a bearish trend creating lower lows and lower highs. With this, we can assume market being in a bearish sentiment. The fact remains that the market still has room to continue moving further down towards the bearish side. At the support level of 1.0480, will be our next profit target. With that, we will be selling at the price of the stop hunt, which is slightly above the resistance level at 1.0580.

The market had a descending and an ascending trendline formed. The ascending trendline retested the price action at the resistance level and created a rejection. On the other hand, the ascending trendline is still pending for the breakout sell. Once the breakout sell has induced, the volatility for bearish pattern will continue.

Thegolden retracement area of 75-78.6% is in confluence with the resistance level. This level is the one where we are anticipating a push down on the EURUSD. Also, we have another technical factor of a trendline at this resistance level.

EMA 50 is bullish and EMA 200 is bearish. The EMA 200 is being retested at the resistance level where as EMA 50 is below the current price action. The death cross on the EMA's is still bearish which depicts the sentiment of a bearish structure.

RSI is at 60 where as CCI is at 150. RSI needs to diverge towards the bearish side in order to create the bearish momentum. CCI, has formed a bearish divergence at the over bought conditions. This means, one oscillators depicts the bearish pressure and has potential to further frail down. 

Triple top on EURUSD

Jun 27 2022

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