Stocks so far are failing to follow through with yesterday's rally. A sharp reversal and new swing low would be a welcome sign for the bears, but right now we don't have it. Still watching, waiting.
The euro on the other hand is looking very weak and vulnerable to a selloff as you can see from the above chart. The price action is choppy and starting to struggle significantly. The RSI reflects that struggle as it is now diverging from price on the hourly chart. I like shorting this pair on a break below 1.4200 and then placing a stop just above 1.4300. I think that breaking down below 1.4200 would be a good enough sign that the pair is probably breaking down to where I can put some money on it and potentially get some huge gains real quick with minimal risk.
EUR/USD: Falling on "Risk Aversion"? Let's Look at the Timeline First
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.