EUR/USD formation for a possible new short

EUR/USD: Down trend, medium movement at a 4H chart - long and a short-term downward movment.

Negative formation is at force, price below Moving averages, which are in bearish configuration 5ЕМА, 13ЕМА and 25ЕМА

Pin bar at resistance levels 1,2,3 EMA, which increases the possibility for a new upward impulse.

RSI is below 50 - short movement

СCI(50) below 0

The medium movement is short, but the price is close to support levels, which increases the risk for trading. What we can do is to look for new sell positions, a little higher around 25EMA( the white line) for a bigger stop loss, in anticipation of the economic news today and Nonfarm Payrolls standings tomorrow.

Therefore, at the moment there is a signal for a new downward impulse and fore more conservative traders a test can be awaited at 25 EMA.

USD will be indluenced by the Nonfarm Payrols data tomorrow. If the data is better, this will rise the chances for FED to increase interest rates, which will lead to higher dollar during the next couple of days. Due to the importance of the news, we can see a slight increase in USD price - trading on the account for better data, but cautious tomorrow in anticipation for the news.

Stefan D. Angelov - Head of Stocks Trading

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