EURUSD Soars, Potential for Profit Taking Emerges

The EURUSD surged nearly 300 pips to reach 1.11465 during today’s trading session, marking its highest level in the past six months. Analyzing the 1-hour chart, the Stochastic indicator is pulling back from the overbought territory, signaling a possibility for further declines.

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On the 15-minute chart, the Stochastic has displayed a bearish divergence. This pattern occurs when the price chart continues to hit new highs (higher high), while the Stochastic indicator creates lower highs.

This development opens the door for potential profit taking, which could cause a drop in the EURUSD.

Technical Reference: sell when below 1.11500
Potential Take Profit 1: 1.10000
Potential Take Profit 2: 1.09500
Potential Stop Loss 1: 1.11500
Potential Stop Loss 2: 1.11850