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Parallel channel broke and retest play

Short
FX:EURUSD   Euro / U.S. Dollar
EURUSD
  • Has managed to run bullish for the 5 straight days from September 25 to October 01 . September 22 high which is 1.1744 is acting as a swing area and holding as a support for the bear
  • The downward parallel channel was broken and retest on September 25 makes this pair to run towards 1.17400.
  • And the upward parallel channel also broken and price fell below the middle line we are expecting the retest play around The Point of control area and then it will fall towards
  • 200 Exponential moving average is acting as resistance for the bull Point of control are is coordinates with the .236 Fibonacci retracement level.
  • below which the .50 Fibonacci lying around 1.16934 which will be a testing ground for both the Bull and bear.
  • If this level firmly broken then the next downside target would be 1.16128 which is a recent swing low area
  • .50 Fibonacci level coordinates with the major psychological level
  • On volume profile currently its trading at high volume area where we can expect more number of sellers from this level
    Hourly
  • Relative strength index is in neutral area as its around 51 level
  • Ichimoku cloud is turned red
  • The price is trading near the lower side of Bollinger band
  • 03 EMA's confluence around 1.17300
  • In RSI bearish divergence was formed
  • MACD is signaling upward pressure, Histogram is turned red

    4 HOUR
  • 100 EMA acting as support - Bear
  • Ichimoku cloud is turned red and pointing upwards
  • Relative strength index is in neutral area as its around 50 level
  • MACD is signaling downward pressure, Histogram is turned red
  • The price reached the lower side of Bollinger band
  • Continuation of downtrend
  • Selling pressure

    DAILY
  • 100 EMA acting as resistance for the bull
  • Ichimoku cloud is about to turn red and pointing downwards
  • Weakening of bullish momentum
  • Middle line of Bollinger bands acting as support for the bear
  • RSI is well below the 50. MACD is about to cross and the histogram is going to turn as green
  • Upward pressure


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