Daily HFT Trade Setup - EURUSD highs rejected in HFT sell zone!
|We are analyzing the trading activity of HFT algorithms in the Forex market this morning and notice that the EURUSD currency pair has already reached the light HFT selling pressure zone that is noted at 1.1714 and above.
Higher prices were strongly rejected in this area and EURUSD is already on the decline. The FxTR CCI indicator has started to shift to neutral while the Stochastic Oscillator shows a strong bearish divergence between the highs in the price and the highs in the oscillator as can be seen from the chart below. Our Master MACD has also turned neutral on the 1-hour chart this morning.
Also important is that the rejection of higher prices occurs in the same 1.1700 resistance zone where EURUSD was rejected last week. The pair has now formed a double top pattern here inside of the light HFT selling pressure zone.
Risk reward favors short positions today with entries around current levels offering a 2:1 reward to risk ratio. Stops can be placed just above the 1.1720 Friday highs with targets toward the light HFT buying pressure zone - noted at 1.1634 and below. The 1.1620 and 1.1600 levels are also support zones.
EURUSD Current Trading Positions
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