We were expecting a fake out to the downside to happen for the EURUSD this week. A downside move did occur but it was not an impulsive move. If we look to the higher weekly time frame, there are still areas that needs to be liquidated to the downside before a sustained up move can happen.
BEAR CASE We think that price will continue to the downside and visit the 1.15 level
BULL CASE The bull case is fairly capped, if for some reason it manages to find momentum to the upside, it should quickly reverse to the downside to fulfil the bear case.
APPROACH: We short when RSI hits the top of the range.