The EURUSD has charted a lower peak followed by a lower trough on the daily. This is the technical definition of a downtrend. The RSI(9) has dipped below 50 and is indicative of bearish momentum. The 4H chart will highlight potential opportunities if the trend remains down.
Potentially we are looking for a bearish 1-2-3 pattern. We have highlighted the 1-2 impulse move down and are now patiently waiting for a 2-3 correction. In effect, we are looking to short the next rally. Ideally the 2-3 correction will move price into the R pivots area which should provide a level for price to react off of. It’s important to not jump the gun, but to rather wait until the signals trigger. In our opinion the daily downtrend makes any rally look attractive for a potential short.
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