LET'S THINK TOGETHER ABOUT EURUSDIn the past week we have witnessed a sharp increase in the eurusd. The climb started from the 1.06700 zone where the pair created support with a triple touch in recent weeks.
Before this restart I would have bet on a visit to the 1.0600 area where we find a lot of liquidity, this did not happen... but this does not mean that the price cannot return there.
At this point let's analyze the two possibilities together.
In favor of the long we have a cot report from last week which shows institutional positions LONG on the pair, all the moving averages (20/50/100/200) were exceeded without a response in the TF daily and above all a weak dollar, which has refused the visit at the highest levels of recent months.
Instead, in favor of the short we have the zone we are entering which is full of resistances, Fibo and POC levels. At the same time the RSI oscillators in the average TFs show overbought. The Cot reports have not been updated and institutional investors are most likely starting to consider unloading long positions after the rise. Retail sentiment 87% long vs 13% short.
At this point comes my idea: We will most certainly see a decline in the short/medium term to fill the areas left and then we will have to observe how the price will react to understand whether to go long and where.
I am currently positioned short and watching whether the price will need higher resistances to open new higher positions.
Always think with your head, do not copy signals without having a valid idea about the operation you are about to open.
