Is EURUSD going to finally reverse? Here's what i think
Hey guys,
this is one of my in-depth analysis on EURUSD. This all started with an overview of the weekly timeframe (i usually do not consider this timeframe as relevant for trading decisions) that presents an unusual situation of RSI overbought (hard to see with bigger timeframes). With this in mind i've gone to the daily tf and saw that we're right at the top of the consolidation channel we were in for more than 2 years now. This zone is obviously a very decisive area and with the help of the structure looking left i've managed to outline a possible reversal zone (yellow box) along with noticing that RSI was in divergence on this tf. As you may know, when these situations appear i usually lower my timeframe (4h and 1h) in order for me to get short with a confirmation down there.
As i went down i've seen an AB=CD 1.618 pattern just completed, with RSI overbought condition and a pinbar right at the D point, that's followed (at the moment) by an engulfing candle.
All these clues add up and boost my confidence on this trade, but i'm still waiting for a confirmation with the next candles.
I'll let you know if i get involved.
If you have questions or ideas to share, feel free to comment below.
Otherwise, see you in the next chart!
this is one of my in-depth analysis on EURUSD. This all started with an overview of the weekly timeframe (i usually do not consider this timeframe as relevant for trading decisions) that presents an unusual situation of RSI overbought (hard to see with bigger timeframes). With this in mind i've gone to the daily tf and saw that we're right at the top of the consolidation channel we were in for more than 2 years now. This zone is obviously a very decisive area and with the help of the structure looking left i've managed to outline a possible reversal zone (yellow box) along with noticing that RSI was in divergence on this tf. As you may know, when these situations appear i usually lower my timeframe (4h and 1h) in order for me to get short with a confirmation down there.
As i went down i've seen an AB=CD 1.618 pattern just completed, with RSI overbought condition and a pinbar right at the D point, that's followed (at the moment) by an engulfing candle.
All these clues add up and boost my confidence on this trade, but i'm still waiting for a confirmation with the next candles.
I'll let you know if i get involved.
If you have questions or ideas to share, feel free to comment below.
Otherwise, see you in the next chart!
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