There Was a Very Clear Signal for Short Positions on the EUR/USD Chart and It Had a Predictable Result

Such a clear and obvious signal is actually pretty rare to see on the charts of any currency pair and when it does appear it should be used to the fullest of its potential. The move to the downside that followed could be used in a textbook.

EUR/USD didn’t begin a considerable correction before reaching the resistance trendline of the daily time frame around 1.1625. That said, the pair started moving to the downside before it could actually touch that trendline even though only 10 pips remained until that could happen. It formed a very clear bearish hammer and has continued falling for three days now.

Although for now it has stopped at the support visualized by (EMA)89 on the four-hour time frame at 1.1390, I am convinced it won’t hold for long. I expect for the move to the downside to continue tomorrow towards the next, stronger support at 1.1450 – 1.1430, which can be seen on the daily time frame.
What will follow next will become clear tomorrow after the Non-farm Payrolls.