During the previous trading session, the EUR/USD currency pair experienced a notable bullish surge following the release of impactful economic news. As a result, the price sharply climbed towards the resistance area at 1.09700, where it encountered a level that prompted a rebound. Today, our focus is on observing a potential market re-equilibrium, which may present an opportunity for a short position following the rebound from this area. Our target for this trade is set at the nearby close support level.
Adding to the potential bearish case, the Relative Strength Index (RSI) currently indicates an overbought condition. This suggests that the market may be ripe for a downward correction, adding weight to the short trade possibility.
Taking into account the recent price action, resistance area, and the RSI's overbought signal, we are monitoring the market closely for a suitable entry point for a short position, with the intention of capturing a potential downward move towards the nearby support level.
Adding to the potential bearish case, the Relative Strength Index (RSI) currently indicates an overbought condition. This suggests that the market may be ripe for a downward correction, adding weight to the short trade possibility.
Taking into account the recent price action, resistance area, and the RSI's overbought signal, we are monitoring the market closely for a suitable entry point for a short position, with the intention of capturing a potential downward move towards the nearby support level.
