A trade to begin the week!
Last week we began with the perspective that the demand to buy the EURUSD instrument was diminishing and that we would be selling our way down just under 1.11000. We also noted that it was possible, for EURUSD to make one last attempt before this drop occurred. EURUSD began last week almost immediately on a note and then just idled lower for the remainder of the week.
Structure was not lost on the technical aspect...it's almost a direct reversal of last week's analysis. EURUSD found support at it's previous resistance off the impulse move it had from the 2015 lows.
Currently on the 1 hour chart there are 2 important strength lines to pay attention to. Once confirmed to be broken - the stage will be set for EURUSD to rise initially to an estimated target of 1.1190-1.1250. 1.1240 is my ideal target (based off of the first resistance that was found before making our current 2016 highs.
Here is the 1 hour chart for reference:
Once this is achieved we'll have to readdress the situation.
On the flip side of things - Watch out for a confirmed break on the of 1.1050 - This will not be a good sign for the bulls. It puts what could be the start of a new in jeopardy as a retest of the core strength would now be inevitable almost 100 pips lower.
Be smart, be patient. Feel free to like/comment/follow