Next up, EUR/USD:
1. Price has moved below the inner lower band.
2. I identified a space down to the recent support line. (Oops, it should have been a red circle. Sorry).
3. RSI is key on this daily chart! An RSI move back above 50 nullifies all my bearish ideas. For now, the story is down, down, down.
4 Hour chart:
1. Price is bearish divergent with the histogram, but NOT divergent with the MACD lines. The story is… either-or. (which means nothing.)
2. Histogram has re-loaded momentum by returning to the 0-line, and I would like to see if it is going to go positive or again start printing longer negative bars. If it cannot go over 0, and that descending topline over the histo holds, it has more meaning.
3. A move with the histogram below the support/resistance lines could be a nice entry for a sell trade to the recent low at 1.2311.
1. I do not plan to take this trade. I will stand aside and watch it play out.
(I have a personal hang up with the EUR/USD, (refer to my Sex and Trading report) and this is not the type of setup I will trade on this pair.)
Have a wonderful day!