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

August 16, 2019 5:00:03 AM by Patrick Yang
Forecast Details
PairEURUSD
Direction Sell
StatusClosed (1.114)
Start
End
Aug. 16, 2019
Aug. 23, 2019

-100 p
1.1240
Stop Loss
1.1140
Entry
+125 p
1.1015
Target 1
+170 p
1.0970
Target 2
Chart & Analyst Comments
The market has stabilized, the first signs of a downtrend appeared

The downwards scenario is quite obvious, but the presence of a large number of "fellow travelers" will not allow the price to immediately go down. We expect a false move up and afterwards set up a Sell Limit.

  1. The sentiment indicator CurrentRatio informs us that the market crowd is buying. As a result, we should only consider selling.
  2. The Current Ratios indicator demonstrates a change in the ratio of players in the market towards buyers. Their increase while the trend is still going downwards may indicate the activity of averaging traders. This can only serve as "fuel" for further downtrend.
  3. There is an increase in sell orders when the price attempts to move down. We expect an upward movement to eliminate accumulated sellers, so we recommend to set Sell Limit at 1.114.
  4. MVP line is above the price and acts as a resistance level.