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EURUSD & EURGBP Continuing Downtrend? Trading “Buy the Dip” on S&P500

   

Welcome to this week’s Market Blast Technicals.

I’m Brad Alexander and on behalf of Valutrades, today we will look at the S&P 500, EURGBP, AUDUSD, and EURUSD.

 

Yesterday we pointed out USD strength from Friday but price action on USD pairs has either reversed or consolidated ahead of today’s US CPI figures.Screenshot 2021-09-14 at 10.18.58

We see a clear downtrend on EURUSD and the Stochastic Oscillator is showing us an Overbought signal.Screenshot 2021-09-14 at 10.19.19

Price action has reached a key level of resistance at the 38.2% Fibonacci level so we may see a reversal here but, again, be aware of today’s CPI announcement.Screenshot 2021-09-14 at 10.19.57

Last week we were looking at a possible reversal on AUD and it seems to have happened.

AUDUSD broke this Double Top and a clear downtrend has started.Screenshot 2021-09-14 at 10.20.15

However, price action needs to break this key level of support which is also the 38.2% Fibonacci level.

We see that the ADX on EURGBP was showing us very little throughout August but has now indicated a downtrend.Screenshot 2021-09-14 at 10.20.33

However, before continuing down, we would wait for the Stochastic Oscillator to turn from Overbought.

Also, if we look at the Daily chart, we can see that price action needs to break this key level of support before falling to the next levels.Screenshot 2021-09-14 at 10.21.02

Looking at the US Indices, we see another classic “Buy the Dip” scenario, which has worked so well for us all year.

The Stochastic Oscillator is confirming and reversing from its Oversold status on the Daily chart.

That’s all for now.  Happy trading with Valutrades and we will see you later in the week with our trading tips video.

CFDs and FX are leveraged products and your capital may be at risk.14 sept EN TN

 

Disclaimer:

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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