EURUSD has started a bearish trend and started moving downwards. The broken support has now turned into a resistance at the price level of 1.0770. This is the level where we will align with the bearish candle of the either the pinbar or the engulfing. Then onwards, we can anticipate the impulse move downwards.

The descending trendline has a retest due at the resistance level where it can reject and confluence with the resistance level. 

The retracement area of 61.8% is in confluence with the resistance level and can start moving towards the lower side after rejecting the area.

The EMA 50 also has an upcoming rejection at the resistance level, in confluence with the trendline and the resistance level.

RSI is at 26. It needs to hop back towards the 50 level of neutralization from where we can asses the confluence of the technical factors.

EURUSD for a short position

Feb 07 2023