KEEPING THINGS SIMPLE ON THE EURUSD
(1 day, log scale)
I KNOW - AGAIN :o) THIS IS A CONFIRMATIONAL UPDATE
-the April/May negative divergence worked out
-price was meeting resistance in June turned down as expected
-at the time, RSI was just slightly at overbought levels (I would prefer a larger RSI overbought reading for a start of an uptrend)
-we are seeing lower highs and (less pronounced) lower lows
- breaking of the trendline was followed by a pretty violent retest, all the way to 1.12
In all & until proven otherwise: EURUSD on the daily switched from neutral to bearish some time ago, and there's no way to look at it as being bullish. Surely, it will bounce off here and there , but all action looks to the downside. First target remains: 1.0820, thereafter possibly a retest of 1.0520 / 1.0450
Two days ago I said: "a breaking of the RSI support-line will be indicative of this". This has now happened & therefore we're looking for further downside. Note: the RSI is certainly not oversold yet - so further downside also the objective from this. (MIND YOU: an oversold reading would only validate that we're into a downtrend again - it's not to say that downtrend would have been complete. Nope.)
(1 day, log scale)
I KNOW - AGAIN :o) THIS IS A CONFIRMATIONAL UPDATE
-the April/May negative divergence worked out
-price was meeting resistance in June turned down as expected
-at the time, RSI was just slightly at overbought levels (I would prefer a larger RSI overbought reading for a start of an uptrend)
-we are seeing lower highs and (less pronounced) lower lows
- breaking of the trendline was followed by a pretty violent retest, all the way to 1.12
In all & until proven otherwise: EURUSD on the daily switched from neutral to bearish some time ago, and there's no way to look at it as being bullish. Surely, it will bounce off here and there , but all action looks to the downside. First target remains: 1.0820, thereafter possibly a retest of 1.0520 / 1.0450
Two days ago I said: "a breaking of the RSI support-line will be indicative of this". This has now happened & therefore we're looking for further downside. Note: the RSI is certainly not oversold yet - so further downside also the objective from this. (MIND YOU: an oversold reading would only validate that we're into a downtrend again - it's not to say that downtrend would have been complete. Nope.)
