EUR/USD: 3 Technical Bearish Signals Support Short Trade – BofAML

EUR/USD fell to the lowest levels in a month but managed to recover. What’s next?

Here is their view, courtesy of eFXnews:

On August 31, Bank of America Merrill Lynch FX Strategy Research Research opened a short EUR/USD spot trade from 1.1891 on that ground fundamentals, quant and technicals argued for a decline.

“EUR/USD has traded around our entry point but has yet to decline to confirm our signals. Two more bearish technical signals have occurred and a small unconfirmed head and shoulders top pattern has developed,” BofAML notes.

Overall, BofAML outlines 3 technical bearish signals for EUR/USD:

1- The September 8th high signaled a TD Sequential 13 sell signal with a stop level of 1.2169.

2- The two peaked bearish price / RSI divergence is now a more technically favorable three peaked bearish divergence.

3- Price action may have formed the right shoulder of a small head and shoulders top that has not yet been confirmed with a neckline break,” BofAML adds.

Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.