EURUSD: Sell Opportunity within the 1M Channel Down.
Following our last successful analysis regarding the expected rebound on the Lower Low of the 1M Channel Down (RSI = 43.472, MACD = -0.008, Highs/Lows = -0.0037) seen below:
we are now switching to a sell on every rise approach as the price is again trending towards the Lower High Zone of the Channel. So far the price has been rejected just below the 1D MA200 (orange line) which is currently at 1.12070.
As seen on the chart, last time the price hit that level on an upward 1D leg (June 7) it pulled back, found support on the 1D MA50 (blue line) and then marginally crossed the MA200 again only to hit the inner 1M Channel Down (bold dashed lines) and make the latest Lower High. Even on the previous Lower High pricing (January 10), EURUSD again hit the inner Channel and started a new bearish leg towards a new Lower Low.
Based on this EURUSD has slightly more chances to rebound on the 1D MA50, hit 1.1200 - 1.1250 and the reverse downwards. However on such a prolonged bearish cycle (since April 2018), there is no guarantee it won't keep declining without making that 1D MA200 contact. The downside has indeed more potential so a sensible long term trader could sell half the normal size here and add the rest if the price touched 1.1200 - 1.1250.
Our Target Zone is 1.08900 - 1.08440.
If the downtrend breaks below the Lower Low zone (red shape) of the 1M Channel Down, then we expect an aggressive break down towards the ultimate Target Zone of the 2015/ 2017 Lows as seen on the chart. That is also the long term High Demand Zone and since it has been holding for nearly 2 decades, it should accumulate buyers.
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we are now switching to a sell on every rise approach as the price is again trending towards the Lower High Zone of the Channel. So far the price has been rejected just below the 1D MA200 (orange line) which is currently at 1.12070.
As seen on the chart, last time the price hit that level on an upward 1D leg (June 7) it pulled back, found support on the 1D MA50 (blue line) and then marginally crossed the MA200 again only to hit the inner 1M Channel Down (bold dashed lines) and make the latest Lower High. Even on the previous Lower High pricing (January 10), EURUSD again hit the inner Channel and started a new bearish leg towards a new Lower Low.
Based on this EURUSD has slightly more chances to rebound on the 1D MA50, hit 1.1200 - 1.1250 and the reverse downwards. However on such a prolonged bearish cycle (since April 2018), there is no guarantee it won't keep declining without making that 1D MA200 contact. The downside has indeed more potential so a sensible long term trader could sell half the normal size here and add the rest if the price touched 1.1200 - 1.1250.
Our Target Zone is 1.08900 - 1.08440.
If the downtrend breaks below the Lower Low zone (red shape) of the 1M Channel Down, then we expect an aggressive break down towards the ultimate Target Zone of the 2015/ 2017 Lows as seen on the chart. That is also the long term High Demand Zone and since it has been holding for nearly 2 decades, it should accumulate buyers.
** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
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Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial