EURUSD Mid-Term View, Beautiful Support.

EURUSD was rocking for quite a while, but we think it is time to sell. On 4H chart the pair touched extreme levels of Daily Pivot Point, which suggests a temporary or permanent turn. Usually the chart reverses and declines at least until the S2 pivot point on the next day. We cannot calculate pivot points for tomorrow, but current estimations show S2 pivot to be below 1.33 level. However, if we consider how overheated is the buying momentum, the sell-off can easily go down to a more substantial support. Let’s look at the daily chart to see a bigger picture:

Unique situation, where previous strong resistance (three peaks in the same area!) considite with 61% Fib level and with 1.3200 round figure. We expect this to be next major battle level and are entering a mid-term short trade with 200 pips target. Be aware though, that it is a clear counter-trend trade with quite substatial target and not clear Stop Loss levels. Very risky, but if EURUSD truns, we expect a rainfall of closing orders from big players. Can be developing over the next couple of weeks.

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