Let’s Take Revenge on EUR/USD
Skerdian Meta • 1 min read
- NZD/USD – Last Friday we opened a sell forex signal in NZD/USD as commodity dollars were retracing higher. But there have been some fundamental events in the far away land of the Kiwis, which we will cover in the next update. Needless to say, our signal here got smoked.
- EUR/USD – So, we’re leaving NZD/USD aside for now, and we’re concentrating on other forex pairs. We just opened a sell signal in EUR/USD since this pair is facing some interesting levels as we speak.
The 100 smooth MA is providing resistance on the H4 forex chart
Above is the H4 EUR/USD chart. This chart is soon becoming overbought with the stochastic indicator near the top of the window. As we know, on downtrends, we wait for pullbacks higher in order to sell. This increases winning potential and minimizes the exposure.
Besides that, the 100 smooth moving average (red) is providing resistance on top. So, our EUR/USD signal is correct on this timeframe chart.
The 100 simple MA looks like the perfect resistance indicator on the H1 chart
The chart setup on the hourly timeframe looks pretty bearish as well. Here, it is the 100 simple moving average (green) that is providing resistance on the top side. The stochastic indicator is of course severely overbought since it has been climbing for a few trading sessions.
But above all, this level in itself is the biggest indicator which should discourage the buyers. The 1.18 area is a big round level which has provided support and resistance before. So, after the retrace higher on a downtrend, this level should provide enough food for sellers to consider jumping in. Let the roller coaster begin.