Potential Drop in the Euro
Hello everyone, today I’m sharing my analysis on the Euro (EUR), as I see a potential drop in the short term. Below, I’ll outline the reasons behind my bearish bias and my entry strategy. Let’s dive in!
Why I’m Bearish on the Euro
Institutional and Retail Activity
My indicator shows a short-term increase in long contracts from retail traders, while institutional players are also selling. Although this isn’t an extreme reading, it’s actionable enough to take a position.
Open Interest
My open interest indicator also shows a clear trend of increasing short contracts, which supports my bearish outlook.
Valuation
My valuation indicator indicates a clear overvaluation of the Euro compared to the US Dollar and gold, suggesting a potential correction.
Technical Analysis
I’ve identified a key zone on the weekly timeframe using an indicator that highlights candles I call "Base" in my technical analysis strategy. These candles have a body smaller than 50% of their total range and tend to accumulate orders before an explosive move. Within this zone, I’m looking for an entry to anticipate the drop that my indicators are forecasting.
My Entry Strategy
I’ll be entering a short position in this identified zone, expecting the downward move my indicators are predicting. I’ll keep this idea updated as the price evolves, so stay tuned for more details.
Disclaimer
This is my personal analysis and does not constitute financial advice. Trading carries risks, so always conduct your own research and assess your risk tolerance before making decisions.
Hello everyone, today I’m sharing my analysis on the Euro (EUR), as I see a potential drop in the short term. Below, I’ll outline the reasons behind my bearish bias and my entry strategy. Let’s dive in!
Why I’m Bearish on the Euro
Institutional and Retail Activity
My indicator shows a short-term increase in long contracts from retail traders, while institutional players are also selling. Although this isn’t an extreme reading, it’s actionable enough to take a position.
Open Interest
My open interest indicator also shows a clear trend of increasing short contracts, which supports my bearish outlook.
Valuation
My valuation indicator indicates a clear overvaluation of the Euro compared to the US Dollar and gold, suggesting a potential correction.
Technical Analysis
I’ve identified a key zone on the weekly timeframe using an indicator that highlights candles I call "Base" in my technical analysis strategy. These candles have a body smaller than 50% of their total range and tend to accumulate orders before an explosive move. Within this zone, I’m looking for an entry to anticipate the drop that my indicators are forecasting.
My Entry Strategy
I’ll be entering a short position in this identified zone, expecting the downward move my indicators are predicting. I’ll keep this idea updated as the price evolves, so stay tuned for more details.
Disclaimer
This is my personal analysis and does not constitute financial advice. Trading carries risks, so always conduct your own research and assess your risk tolerance before making decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.