Reversed Nicely Off Its Resistance, Further Drop Expected
Sell below 1.2378. Stop loss 1.2455. Take profit 1.2233.
Reason for trading strategy:
EURUSD reversed nicely off its resistance at 1.2378 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap resistance) where we expect it to fall to its support at 1.2233 (61.8% Fibonacci extension, 78.6% Fibonacci retracement). We have also identified another resistance at 1.2455 (100% Fibonacci extension, 76.4% Fibonacci retracement, multiple swing high resistance).
Stochastic (55, 5, 3) has reversed off its resistance at 97% where it still has a lot of downside potential.
Reason for trading strategy:
EURUSD reversed nicely off its resistance at 1.2378 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap resistance) where we expect it to fall to its support at 1.2233 (61.8% Fibonacci extension, 78.6% Fibonacci retracement). We have also identified another resistance at 1.2455 (100% Fibonacci extension, 76.4% Fibonacci retracement, multiple swing high resistance).
Stochastic (55, 5, 3) has reversed off its resistance at 97% where it still has a lot of downside potential.