Here we have the EURO at the start of making some higher highs and higher lows highlighted by the blue line. We are also coming up on a couple of deterring factors that have played a role in prior short term move downward that may look to replicate for a quick gain of 100-250 PIPs. Let’s zoom in:
Here’s what we can see:
* Overall downtrend of the EURO (Dotted blue diagonally)
* Consistent higher high and high low pattern beginning (Start from the lowest blue line)
* Nearing overbought RSI (Relative Strength Index) levels
* Multiple breaks in the upper Bollinger Band (Candlestick circled area) signifying a potential reversal could be upcoming
A short trade here could be justified with the potential to retrace back to levels nearing the 0.97889 area. My suggestion would be to put the your take profit above that area slightly with a stoploss above the resistance area of 0.99059. No major financial or economic events should throw this off.