EUR/USD deeper pullback short trading setup

Nenad Kerkez Top-XE

EUR/USD technical analysis

Move down from MH3.
I have a short position.
Bearish trend continues.
6 point bearish move.

MEGATREND MAs: Neutral

D1 Chart EUR/USD

Swing high
Order block
Lower high
Lower low
Order block retest
Potential target

EUR/USD is moving down. We have witnessed a deeper pullback to the long side. In my Telegram group we could see great positions from both long and short trades in the last 2 weeks. Now I am shorting it as the price is showing double top at M H3 resistance. It’s also a retest of the order block. We should see a move and continuation down below the trend line which might be broken soon. Look for 1.0171 as the intraday target and possibly 1.00781 if the price continues lower.

The ECB policy diverges from the FED policy. So, in that case I expect more EUR weakness generally. In the example above, technicals are still generally very bearish and the deeper pullback is a part of the EUR/USD bearish trend. So, the price should go down and only if it breaks MH3 1.0371 the trend might change, and we could start buying the dips.

Author

Nenad Kerkez

Top-XE

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