Spoke about EURUSD as we were nearing a major support/flip zone on the longer timeframe. Then it peaked my interest when we broke above the previous swing (lower high) at 1.1070. Therefore we nullified the downtrend.
This zone has proven to be support as you can see we retested this zone. However, I am still awaiting for our first HIGHER LOW to confirm a new uptrend. This higher low could be the retest as just mentioned, but by definition we need a higher high to confirm a higher low. This will occur once we break and close above the 1.1175 zone.
This also creates a breakout of a cup and handle pattern.
1.14 is a zone for take profit but I would watch the flip zone at 1.13 as it is very important and has seen multiple reactions.
If we take a look at the US Dollar Index, we can see that we are also potentially making a confirmed lower high on the daily but requires a lower low:
This would add more confluence to our EURUSD trade as they are inverses.
This zone has proven to be support as you can see we retested this zone. However, I am still awaiting for our first HIGHER LOW to confirm a new uptrend. This higher low could be the retest as just mentioned, but by definition we need a higher high to confirm a higher low. This will occur once we break and close above the 1.1175 zone.
This also creates a breakout of a cup and handle pattern.
1.14 is a zone for take profit but I would watch the flip zone at 1.13 as it is very important and has seen multiple reactions.
If we take a look at the US Dollar Index, we can see that we are also potentially making a confirmed lower high on the daily but requires a lower low:
This would add more confluence to our EURUSD trade as they are inverses.