EUR/USD : Daily chart : short trend , middle-term choppy and short-term correction
The price enters zone of significant resistance 114-1467 , where we are expecting activation of the sellers and big supply.
Price action : The piercing bar is with small solid body and relatively large upper and lower shadows “ spinning tops” , this is candle which indicates uncertainty of the buyers in this prices and increase possibility of correction .
Price action : Hanging man Bearish Reversal – trend reversing formation for possible decrease.
Current bearish candle engulf the small thick body of the previous candle , giving us signal for slightly overpowering of the bears.
Indicators :
In this middle-term consolidation the best signals comes from Stock . The indicator turns over above 80 , which means increasing the probability for decline . RSI pushed from level 70 .
Alternative scenario : If the price eventually go over the maximum of the piercing candle will negate the formation .
Sentiment : in the moment we are trading the speculation that the FED won’t rush with interest hike . The monetary policy of ECB is expandomatic ,and FED’s is restrictive .
Stefan D. Angelov - Head of Stocks Trading
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