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Instrument: EURUSD
Bullish Preference:
A Buy position is envisaged if the price trades above 1.06295 With take profit at 1.06401
Bearish Preference:
A Sell position is envisaged if the price trades below 1.06080 with Take profit at 1.05999
Fundamentals:
1:30 PM USD Employment Cost Index q/q
3:00PM CB Consumer Confidence
Comment:
EUR/USD cleanly broke through the topside of a descending trend channel to start last week, briefly pierce minor resistance levels near 1.0680 to make a high at 1.0695.
The price action on the day that the price made that high saw a Bearish Engulfing Candlestick
formation emerged and it has gone lower in the proceeding days.
A Bearish Engulfing Candlestick opens at, or above the previous candle’s close. The length of the bearish candle ‘engulfs’ the previous green candle and it then closes below the prior candle’s open.
This reversal might signal that the descending trend may re-emerge.
The recent rally broke above the upper band of the 21-day simple moving average (SMA) based Bollinger Band. On the same day that Engulfing Candlestick materialised, the price closed back inside the band.
Analysis: SCRUM Team
