EUR/USD D1 and H4 charts 01.08.2016
D1:
Price reaches levels of horizontal resistance
Price is below diagonal resistances and 23,6 Fibonacci level of the long term downtrend.
H4:
Pin bar at levels of resistance whit a big upper shadow for a possible reverse of the last upward movement.
Three bars in a row can't break the resistance at levels of the upper shadow of the pin bar. The current bar is bearish engulfing bar to increase the probability for downward impulse.
Technical indicators:
CCI(14) went below 100 - signal for sell
CCI(50) reverse from levels above 210 - signal for sell
Sentiment: Last statement by FED new York, William Dudley increases the possibility for a rate hike in USA before elections, which supports USD, after Friday sell off because of the worse than expected GDP data.
Entry now or after a little correction of 10 or 15 pips.
SL: 1.1228
Alternative scenario: A closed bar above the upper shadow of the pin bar will negate the negative formation.
Jr. Trader Nikolay Georgiev
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