EUR/USD: downtrend, mid-term consolidation and short-term upward movement.
Price reaches levels of resistance - previous top, tests diagonal resistance ex-support.
Correction of the short up to 38.2% Fibo - zone with significant resistances.
Negative formation at the resistance zone - 2 pin bars and the price went under the bottom of the second at 1.1011 - movement is short.
Price stays at 25 ЕМА - dynamic support, but still RSI is over 50.
In this case I would choose the conservative way of trade: sell after test at 1.0998 and set stop loss over the top of last tops as I expect more volatility because of the ECB report tomorrow.
Sentiment: expectations are for a small lowering of the rate of deposits from ECB, which can have negative impact over EUR.
Stefan D. Angelov - Head of Stocks Trading
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