The EURUSD pair was inside a downside trend (mid term, confirmed in daily charts). But on that general movement, we can notice on the 4h chart a bullish reversal construction taking place from the bounce at 1.08805 (Major support). The low and tops are getting higher, which is the basic definition of an upside trend.
This change of dynamic in short term is confirmed by the EMA(50), which is also making a reversal. The last bounce at 1.09360 took place at the 50% retracement of the previous upper wave. That makes it a great support level for short term. Hence, we can expect the EURUSD to make another progression (3rd wave) toward the next resistance area at approximately 1.1050.
On that situation, here is the strategy you can follow :
- Open long at the current price (approx. 1.09620)
- Stop @ 1.0925 (below the first support, to avoid usual market noise)
- Target @ 1.1030 (below the resistance area to make sure you get executed when the scenario happens)
Reward / Risk = 1.84
Feel free to leave your view about EURUSD in 4h.
This change of dynamic in short term is confirmed by the EMA(50), which is also making a reversal. The last bounce at 1.09360 took place at the 50% retracement of the previous upper wave. That makes it a great support level for short term. Hence, we can expect the EURUSD to make another progression (3rd wave) toward the next resistance area at approximately 1.1050.
On that situation, here is the strategy you can follow :
- Open long at the current price (approx. 1.09620)
- Stop @ 1.0925 (below the first support, to avoid usual market noise)
- Target @ 1.1030 (below the resistance area to make sure you get executed when the scenario happens)
Reward / Risk = 1.84
Feel free to leave your view about EURUSD in 4h.