This pair is in a bearish market structure on the Weekly and daily time frames. The next visible support level on the weekly chart is around 1.600. Therefore, this pair has some more room to move downwards still.
On the 4H chart, this market is clearly in a downtrend, and the entry position has the following confluences:
- Price is in a bearish market structure, having formed a lower low.
- All EMAs are sloping downward and in the correct order.
- Entry point is in a golden bearish fib zone (between 50% and 61.8%).
- Entry point lines up with about a 34 EMA touch, which should behave as a dynamic resistance.
Current fundamentals aren't the strongest for the dollar, but euro fundamentals are also very weak this time, so I don't see the US fundamentals as prohibitive for this trade, especially on this lower time frame.
On the 4H chart, this market is clearly in a downtrend, and the entry position has the following confluences:
- Price is in a bearish market structure, having formed a lower low.
- All EMAs are sloping downward and in the correct order.
- Entry point is in a golden bearish fib zone (between 50% and 61.8%).
- Entry point lines up with about a 34 EMA touch, which should behave as a dynamic resistance.
Current fundamentals aren't the strongest for the dollar, but euro fundamentals are also very weak this time, so I don't see the US fundamentals as prohibitive for this trade, especially on this lower time frame.