Dear traders,

As we have mentioned in our daily market analysis of yesterday, the EUR/USD formed the Divergence between the prices trend and the stochastic trend to reach the 1.2555 level.

We notice on the 1 hour chart that the prices tested the bottom line of the ascending channel, then rose to the 1.2616 level to form the second shoulder of the Head and Shoulders form , so today we expect that the prices should retreat to the 1.2564 level and if it breach down this level, this is a signal of strong drop towards the 1.2524 level than to the 1.2485 level, the Stochastic indicator also has reached the overbought and this confirms the bearish trend.

However, we expect on the Asian trading of today that the EUR/USD would recover to test the 1.2654 level, and then it will resume its bearish trend towards the above mentioned levels.

We advice our dear clients to follow our latest news on Facebook and Twitter. especially the economic news.

Nice trading guys
(Source )