Vladimir Ribakov analyzes EUR/USD and identifies two supply zones where the pair might reverse. The currency is sitting on the upper Bollinger Band, an overbought signal, making a short-term sell look attractive despite unclear longer-term direction.
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What do we have here? While the long term is not really obvious, on the shorter term there are several very interesting levels to pay attention to. First of all, of course, the previous key high and this range before the sellers took the control, which turns that to be a beautiful supply area. We also have this zone here, which also is a high of the previous uptrend, another supply zone. So as long as these levels I believe the euro is going to get there and start the retrace to the downside. Not sure again about the long-term setups yet, but on the shorter term, it starts to look very interesting. We can see that the euro dollar is riding on the upper band of the Bollinger Band. Usually, this is a sign of overbought conditions. That hint that the reversal is building up. You can see how it looks in here. For example, it was riding on the bottom, riding on the bottom, and it usually— it's a hint that a reversal is due. So right now we are riding on the upper side of that. Add to that the levels we just discussed, and you receive on a short term a good sell opportunity.
