Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Orange zones – critical zones based on the 1h time frame
According to last week’s EUR COT Report we can see that the “long” contract sizes remain strong. This week the continuation of the bullish momentum will most likely stay unchanged.
On our 4H timeframe analysis we have shown that the price will go towards the monthly critical area near the 125.000-127.000 zone before starting a new downtrend. In order to have more precise entries we need to analyze the 1H timeframe as well.
After the price made a false breakout bellow the daily critical area and the bottom trendline of the 4H closed triangle near 120.300, it started a new uptrend on the 1H timeframe. It closed above the daily critical and then above the 4H critical near 122.000. This resulted in the price ranging between the two 4H critical zones: 122.500-122.000.
Now we have 2 good possible entries for the continuation of the uptrend.
1. Price will receive support from the “W” neckline near the 122.200 area and will go straight for the 123.000 mark.
2. Price will receive support from the 4H critical area near 122.000 and go towards the 123.000 mark.
The 123.000 area will be a strong psychological barrier for the price, and we can expect that it will turn into a resistance zone at first. If it does ,it will create a new upper trendline that will lead us towards the 124.000 mark. Before that we may see the price ranging between 123.000 and 122.450.
We must patiently wait for a strong close above 123.000 which will once again increase the power of the uptrend momentum.
Happy Trading!
Blue zones – critical zones based on the 4h time frame
Orange zones – critical zones based on the 1h time frame
According to last week’s EUR COT Report we can see that the “long” contract sizes remain strong. This week the continuation of the bullish momentum will most likely stay unchanged.
On our 4H timeframe analysis we have shown that the price will go towards the monthly critical area near the 125.000-127.000 zone before starting a new downtrend. In order to have more precise entries we need to analyze the 1H timeframe as well.
After the price made a false breakout bellow the daily critical area and the bottom trendline of the 4H closed triangle near 120.300, it started a new uptrend on the 1H timeframe. It closed above the daily critical and then above the 4H critical near 122.000. This resulted in the price ranging between the two 4H critical zones: 122.500-122.000.
Now we have 2 good possible entries for the continuation of the uptrend.
1. Price will receive support from the “W” neckline near the 122.200 area and will go straight for the 123.000 mark.
2. Price will receive support from the 4H critical area near 122.000 and go towards the 123.000 mark.
The 123.000 area will be a strong psychological barrier for the price, and we can expect that it will turn into a resistance zone at first. If it does ,it will create a new upper trendline that will lead us towards the 124.000 mark. Before that we may see the price ranging between 123.000 and 122.450.
We must patiently wait for a strong close above 123.000 which will once again increase the power of the uptrend momentum.
Happy Trading!
Trade closed: target reached