الثلاثاء، 2 أغسطس 2016

Exness-EURUSD remains strongly overbought, expecting a bearish reversal

Sell now and sell once more if price rises up to 1.1235. Take profit at 1.1075. Stop loss at 1.1305.

Reason for the trading strategy (technically) :

1.1235 is the golden ratio Fibonacci retracement from the high of 24th June 2016. It is also a 1.0 Fibonacci projection as seen by the brown arrows. This is hence a key resistance level for us to sell off.

1.1075 is our first profit target because it is a graphical support + 50% Fibonacci retracement level.

RSI has reacted off the 76% resistance level and has also made a bearish exit from its ascending support-turned-resistance line.

Reason for the trading strategy (fundamentally) :

The key news event are the USD Spending reports and Personal Consumption Expenditure reports. A high reading is bullish for USD and a low reading is bearish. Our recent trend since 2015 June has been seeing a steady rise meaning we can expect USD to be bullish, hence that goes in line with our view on EURUSD being bearish.


Exness-EURUSD remains strongly overbought, expecting a bearish reversal

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