I am taking a short trade on the EUR/USD @ 1.4790, with a stop @ 1.4950. My target is the 1.4400-1.4500 zone.
Friday's reversal was interesting because it happened on poor employment data. This price action formed a nice bearish engulfing candle. As well, MACD divergence seems to be forming, which would indicate another drop in prices. Finally, it looks like a triangle is forming on the daily chart. There should be one more leg down to the lower trendline, and then a thrust through 1.50.
On the 2-hr chart, notice the strong MACD divergence. Also, notice how the rise from 1.4364 was choppy instead of in a clear 5-wave pattern. I think this means we have another decline to go before the bull trend resumes in full.
Friday's reversal was interesting because it happened on poor employment data. This price action formed a nice bearish engulfing candle. As well, MACD divergence seems to be forming, which would indicate another drop in prices. Finally, it looks like a triangle is forming on the daily chart. There should be one more leg down to the lower trendline, and then a thrust through 1.50.
On the 2-hr chart, notice the strong MACD divergence. Also, notice how the rise from 1.4364 was choppy instead of in a clear 5-wave pattern. I think this means we have another decline to go before the bull trend resumes in full.
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