By Russell Glaser – A continuation of the previous Forex Technical Analysis of the EUR/USD 4-hour chart shows that it may be time to close out those short positions that were opened two days ago.
Traders who were short on the EUR/USD may want to close those positions at a profit, or at least pair their exposure at this time. The 4-hour chart shows some resistance building, if only in the short term.
Below we have the 4-hour EUR/USD with a long term trend line that begins on Jan 26th (not shown) and a new short term trend line that begins at yesterday’s price high of 1.3625
1. The Stochastic Slow Oscillator is showing a bullish cross forming below the 30 level. This indicates the potential for an appreciation of the price.
2. The 7-day Relative Strength Indicator briefly dipped below the oversold level and has since moved above this level. This indicates a sell signal.
3. The price reached a significant support line at the price of 1.3956. The pair has since reversed upwards.
4. The next resistance lines for the pair stand at 1.3512, 1.3570. 1.3625.
The pair looks to be making a slight correction in the long term bearish trend. Traders may find a new entry point to go short on the EUR/USD pair at one of the resistance levels above.
Forex Market Analysis provided by Forex Yard.
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