EUR/USD Bearish divergence, 27.09.13

Trading Discussion
1

Hi Forex people,

Today, I noticed bearish divergence at 4H timeframe of EUR/USD (see image). Price is performing Higher highs whereas indicator is showing Higher Lows. I think, next week, we can witness bearish action for EUR/USD pairs.
As for the fundamentals, next week on Tuesday we are waiting for German employment data. I think, bearish action may happen if data wont meet expectations.
I would be very pleased to see your comments before making decision :slight_smile:

EURUSD Baearish divergence from 27.09.13.jpg700×394 54.8 KB

2

Hi Sayrix,

I think you’ve got a case for at least a short term swing down. I’n addition to your divergence, you’ve got a wedge forming, the low of which was a test of the 23.6 retracement.

For me, I’d want a decisive break of the lower wedge and a retest before going short, but that’s just me :slight_smile:

Where would your SL and target be?

eurusdh4.jpg700×547 35.5 KB