EURUSD Is Approaching Its Resistance, Prepare For A Drop

EURUSD is approaching its resistance, we expect to see a drop.

Sell below 1.2421. Stop loss at 1.2453. Take profit at 1.2345.

Reason for the trading strategy (technically):

Price is approaching its resistance at 1.2421 (78.6% Fibonacci retracement, horizontal swing high resistance) where we expect price to reverse, pushing it all the way down to its support at 1.2345 (horizontal overlap support). We do have to be cautious of the intermediate resistance at 1.2387 (horizontal overlap resistance) where price could react off it and fall to the support from there.
Stochastic (55, 5, 3) is approaching its resistance at 95% where we expect a corresponding reaction.

Put your trading knowledge into action. Create a trading account now.

Disclaimer: The publication of Analytics is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. The Analytics is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the Analytics. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its Analytics.