EUR/USD Short Trade Opened-200 Pips Expected!

On Friday, a clear bearish divergence pattern appeared on the EUR/USD H4 and H1 chart. EUR/USD stochastic is overbought on H4 and H1 timeframe however stochastic is close to 70 reading on D1 timeframe. It is clear a bearish divergence pattern will also start appearing during the next week. EUR/USD dip is expected to make 200-400 pips next week. Take a look at the EUR/USD H1 chart below that shows a very clear bearish divergence pattern on the Stochastic, MACD and the RSI.

EUR/USD Short Trade

As you can see, the three oscillators are showing bearish divergence which is an indication that the price has reached the top and it will start declining from this point on. Now take a look at the EUR/USD H4 Chart below!

EUR/USD Short Trade

In this chart, you can see RSI showing a very clear divergence pattern plus stochastic is also showing a bearish divergence pattern. Stochastic is in the overbought region and it is expected that it will climb down to the oversold region in the first few days in the next week losing around 200-400 pips. If you are short at this time, you can make 200-300 pips in the first few days of the next week.