By: John Ursus
Timeframe: W1 Recommendation: Short Position
Entry Zone: 1.3750 – 1.3800
Take Profit Zone: 1.3400 – 1.3450
Stop Loss Zone: 1.3950 – 1.4000
The EURUSD has rallied into its resistance zone and bullish pressures have decreased as this currency pair has been grinding around the lower band of its current resistance zone. Uncertainty about developments from the European Central Bank which is expected to implement negative deposit rates have put a top on the EURUSD.
Forex traders should expect a correction which could take the EURUSD back down to its Fibonacci support level. The correction could be short and violent which is expected flush out pending stops after which the EURUSD is likely to remain its upward trend and breakout above its horizontal resistance zone.
