Last week has been a strong rally for EURUSD free-falling from 1.187 all the way down to 1.161 on Friday closing
But is the pullback finished? There is evidence showing us that the pullback might be coming to an end
On Friday US market opening EURUSD has broken the last support and making a lower low but stochastic is making a higher low which a stochastic divergence on H4 has occurred and that might be a signal of a trend reversal
Currently, market structure is still valid as the lower high and lower low is still in place but there was an attempt of a trend reversal as there was another stochastic divergence occur yesterday on a smaller timeframe (30M and 1H) but eventually, the bears took control and drag EURUSD even lower.
Although the monthly Fibonacci retracement has not yet reached as 0.236 level has broken but it is still pretty far away from 0.382 level but EURUSD might reverse from here without testing the monthly Fibonacci retracement
Right now there are a few ways to deal with this pair
1. open a long order with a 1 ATR SL below the lowest point (1.161)
2. wait for a broken market structure, a higher high and a higher low
3. if a new low has been made then continue shorting and see if 0.382 will hold
Thank you for reading, please leave a like if you like the idea, hope you have a good weekend!
But is the pullback finished? There is evidence showing us that the pullback might be coming to an end
On Friday US market opening EURUSD has broken the last support and making a lower low but stochastic is making a higher low which a stochastic divergence on H4 has occurred and that might be a signal of a trend reversal
Currently, market structure is still valid as the lower high and lower low is still in place but there was an attempt of a trend reversal as there was another stochastic divergence occur yesterday on a smaller timeframe (30M and 1H) but eventually, the bears took control and drag EURUSD even lower.
Although the monthly Fibonacci retracement has not yet reached as 0.236 level has broken but it is still pretty far away from 0.382 level but EURUSD might reverse from here without testing the monthly Fibonacci retracement
Right now there are a few ways to deal with this pair
1. open a long order with a 1 ATR SL below the lowest point (1.161)
2. wait for a broken market structure, a higher high and a higher low
3. if a new low has been made then continue shorting and see if 0.382 will hold
Thank you for reading, please leave a like if you like the idea, hope you have a good weekend!
