Good evening guys,
USD strength coming into play at the moment. Joe Biden has been confirmed by Congress as the next President of the US. It appears as though its a classic buy the rumour sell the fact scenario. That means the USD has been hammered down relentlessly in anticipation of a Joe Biden victory, now he has been confirmed by Congress, we are seeing sellers take profit on the USD short positions (or EURUSD long positions). The EURUSD is setting up nicely for a possible sell position.
This is to keep you posted on a set up we are watching.
EURUSD – Daily Charts
Bearish divergence coming into play on the daily charts which has worked well previously at spotting reversal opportunities. There are a couple of trend lines to be aware of on the longer term charts.
EURUSD 1 Hour Charts
We can see a rising wedge, and a possible ending diagonal formation. We are waiting for a breakdown from the wedge to enter short positions. Ideally we would see a breakout and a retest, or a breakout and close on the 4 hour charts out side of the wedge.
We will keep you posted once a trade has been activated in telegram. If you are able to watch this yourself, jump in the live chat and let us know your thoughts on entry points. This isn’t a simple sell stop play. The 1.2150 support appears to be a reasonable initial target zone.