Yesterday EURUSD started trending upward and formed a large green candle. When price moves significantly and forms larger than average candles price most often but not always retraces approximately 50% of that candle. Notice price has now moved back down to the 50% level of yesterdays candle (tall green candle). Also notice the horizontal red support line I drew off the late January low (see red oval). Once price found support at this price level EURUSD reversed directions and moved up to the downward sloping channel resistance level. Once price finds a resistance level it cannot break through price often moves back down to test support. Notice price moved back down to test the red support line. After several days price managed to break down below this support level. This price level has now changed from one of support to one of resistance. Once a support level is broken price will normally move down to the next support level which it did by moving down to the downward sloping channel support line in early March. Price has now trended upward and earlier today it tested the red resistance level. This resisance level held and priced reversed and has been trading lower. Notice price is now at the 50% level of yesterdays large green candle. I expect price will now reverse back upwards from approximately this price level. Price will move back up to again test resistance of the red horizontal resistance line. I may stick close to this line for a day or two but will most likely break out above this line of resistance and will continue to trend back up to the black downward sloping channel resistance line.
So now it is time to start trading. I will now wait for price to reverse back upward and will then start trading EURUSD with long positions. When price hits the red horizontal resistance line I will close out my long position and wait for a break out above the red resistance line. I will then be ready to enter new long positions as price moves up to the black downward sloping channel resistance line at which time I will exit my long position.
So now it is time to start trading. I will now wait for price to reverse back upward and will then start trading EURUSD with long positions. When price hits the red horizontal resistance line I will close out my long position and wait for a break out above the red resistance line. I will then be ready to enter new long positions as price moves up to the black downward sloping channel resistance line at which time I will exit my long position.