Potential SELL STOP on EUR/USD from 1.0883I have a potential EUR/USD SHORT trade from 1.0883.
1.0883 is WR1 (weekly resistance 1) pivot and this pivot co-incides with a line of resistance which was last weeks high (Monday 20th May).
This morning, 1.0879 has proven too tough to break for EUR/USD BULLS despite several attemps.
It's possible we may see EUR/USD decline from these levels though the proximity of the WR1 is usually irresistable and my guess is that we'll see a final push to reach the pivot.
This effort may be too much for EUR/USD BULLS and I'd expect to see SELLERS jump in at WR1 and drive the price south.
On the D1 time frame we can draw a trendline from the 18th July 2023 high (1.1279) through the March 8th 2024 high at 1.0983 and this line meets the recent high at 1.0898 12 days ago and we are now up against this line.
All this means that EUR/USD BULLS have it all to do to head much higher and I'd expect to see a reversal in the 1.0900 to 1.0880 area.
If we do indeed readh WR1 and we see the price stall and reverse (as expected) then I'll use the Andean Oscillator to confirm the SELL trade and once I see the lower time frames turn BEARISH then I'll enter SHORT.
Although we've been in an uptrend since mid April, the overall structure remains BEARISH.
A break of the trendline mentioned above though could be signfiicant as a look at the D1 time frame shows us that we are in a well defined flag/pennant formation and if price breaks out north then we can expect to see EUR/USD head much higher.
