The EURUSD pair surged after breaking through the Bearish Channel pattern (red line) and the Descending Triangle (green line) on the hourly chart. However, the Stochastic indicator is now forming a bearish divergence, suggesting a potential short-term correction.
Bearish divergence occurs when the price chart consistently makes new higher highs, while the Stochastic indicator shows lower highs.
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On the 15-minute chart, the Stochastic indicator has entered the overbought territory, increasing the likelihood of a correction for the EURUSD. The nearest resistance is around 1.09750, and as long as the price remains below this level, there is a potential for decline.
Technical Reference: sell while below 1.0975
Potential Take Profit 1: 1.09100
Potential Take Profit 2: 1.08800
Potential Stop Loss 1: 1.09750
Potential Stop Loss 2: 1.10000
