The market has stabilized, the first signs of a downtrend appeared

February 11, 2020 1:16:07 PM by Alexander Zorevyk
Forecast Details
PairAUDUSD
Direction Sell
StatusClosed (0.6685)
13:13
13:13
Feb. 11, 2020

-45 p
0.6730
Stop Loss
0.6685
Entry
+45 p
0.6640
Target 1
Chart & Analyst Comments
The market has stabilized, the first signs of a downtrend appeared

For this forecast, we recommend to set Sell Limit at the following price - 0.6685. This idea is based on the following analysis:

  1. The Current Ratio indicator have reached a critical value, too many traders expect an upward movement. In this case, we recommend to Sell only.
  2. The activity of "fresh" buyers in an uptrend may indicate that the market expects the recovery of the bull trend. However, according to our analysis, this movement is corrective and we expect the price to go down.
  3. Upward price movement is accompanied by reversal signals of Profit Ratio indicator.
  4. MVP line is above the price and acts as a resistance level.
  5. The price decrease will be accompanied by the trigger of market crowds’ stop losses, which in turn will serve as a "fuel" for the downward movement.