EURUSD has been in a down trend  since breaking the range towards the bullish side, and then continuing the direction downwards. At the moment, market is forming lower lows and lower highs due to which we can denote the direction being bearish. EURUSD has broken the support at the price of 1.0030 and is due to retest. We will take a short position simply after the retest happens and the market prints a bearish candle from the support turn resistance. We will continue the position till the support level.

The ascending trendline is pending for breakout for sells and the market needs  to be validated the breakout as well. As we missed the train of the breakout sell, we will wait for the market to retest the resistance once again.

The retracement level of 61 is at the second resistance. Market may reach there to grab our order. But we will short again at this level in case market breaks this first resistance and continues moving up. Apart from this, the resistance has the confluence with the retracement level.

EMA 50 is bearish as well and might have a retest at the given resistance level which has confluence with other technical factors. That being said, we won't be waiting for the EMA retest for this position. If it happens, well and good and if it doesn't, we are still good for the short position.

RSI is currently at the 51 level. This region needs to be neutralized in order for the market to reach the resistance and then continue moving down. We won't be blindly buying as the oscillator is in the over sold region. In fact, we will wait for the market to test the resistance and then we can ride the trend.

Strong downtrend

Sep 01 2022