EURUSD has been in a downtrend / correction from year 2008 and has fallen about -35.02% since then.
I believe EURUSD is in a short covering mode and will resume it's downtrend after it meets the key supply zone at 1.23040 to 1.20422 which is the trend line on the upside as well as the horizontal resistance line or both (confluence).
The RSI easily confirms the divergence at the presumption of the 4th wave.
There is also some resistance at 1.18455 which I think will be overcome by demand and the prices should test the stronger resistance as mentioned above.
There will be a good opportunity to "short at the key supply zone" and book profits at the support - 1.05156 to 1.0000.
I believe EURUSD is in a short covering mode and will resume it's downtrend after it meets the key supply zone at 1.23040 to 1.20422 which is the trend line on the upside as well as the horizontal resistance line or both (confluence).
The RSI easily confirms the divergence at the presumption of the 4th wave.
There is also some resistance at 1.18455 which I think will be overcome by demand and the prices should test the stronger resistance as mentioned above.
There will be a good opportunity to "short at the key supply zone" and book profits at the support - 1.05156 to 1.0000.
Comment:
P.S. Daytraders might want to time entries using lower time frames, since they have tight stops.