Good day Forex traders!

Lets look at the chart below.

euro dollar analysis

euro dollar analysis

Looking  at the chart above, I believe that there is a possibility of a correction in this pair. 1.35 is proving to be quite a resistance and the pair should turn lower from here before it makes its next move after this strong rally. On the chart, we can see that the price is trying to move below the 15ema which to me indicates a potential for the price to move downwards.

The MACD histogram is also showing a bearish divergence with prices going higher but the histogram making a lower high.

MACD is also showing that there is a bearish crossover.

Stochastics is also turning lower and have breached the crucial 80 point and is now at around 69.

I have taken a short trade at 1.342. Scalping trade.

Trade Update:

Took profit at 1.34, a 20 pips gain.

Happy trading!

~ Ardy

Singapore Forex Traders Blog