A great opportunity for Shorting EURUSD

Finally it is the time to trade EURUSD. I have been waiting for this trade for weeks.

Here are a few reasons that convinced me to trade EURUSD:

1) Technically the price has broken the long terms rising channel and has been trapped inside two wedges. Just recently it broke the larger wedge and just yesterday it retested the wedge again and it acted as a resistance. Technically we have what we have been waiting for particularly as the Stop loss is not huge.

2) This is EURO Futures (E61!) and confirms the break of the wedge and see the next major support is.

3) Also see the Euro Index (EUSTX50). It normally moves on opposite direction of Euro futures. See the false breakout of the wedge at the bottom of the channel followed by a break on the other side of the wedge. See where it is heading. Yes, UP. It is what we need for our EURUSD Short trade because it suggest Euro to go lower.

4) See weekly weighted average EURO. It make Lower Low on RSI although it makes Higher High on the price trend.

5) That was it about EURO. NOW let’s look at US DOLLAR. What a beautiful breakout of the weighted average USD which happened after a false breakout of the lows. Target is the highs of the wedge or Fibo overlaps. Stronger USD is what we need for EURUSD Short trade.

6) See the nice breakout of the Treasury Notes. It moves in the same direction of the USD.

7) DXY is self-explanatory

8) Bond futures also move against Treasury Notes. It is breaking several layers of supports and heading lower. Again signals stronger USD.

9) Last one is Gold. Cheaper Gold means USD is appreciating.

If you enjoyed this analysis do not forget to like it. Thank you

ノート

10 Yrs Treasury notes hit 3.04%, the highs of 2013. Good for Dollar. Also see the breakout of the Neckline of the Inverted H&S. Good for Dollar and of course good for our trade :)