This week I did take two trade in the EURUSD, both of them being succesful (links below). I got several pm's from traders asking me to post my view in EURUSD forecasting the bigger picture in order to have a solid base to take our decisions.
Looking at the weekly chart of EURUSD and using median line analysis and simple structure levels we may easily see is that price is now being traded at a key support level which consist from the lower parallel of the upsloping pitchfork and a previous resistance structure level now acting as support. In addition to that - always in the weekly chart - we do have a pending head and shoulder pattern with the left shoulder and the head sitting at 1.20450 and 1.25400. A potential rally towards 1.20450 will give us the completion of the pattern and a very good reason to watch for shorts.
Switching to the daily chart we do have more confluence. At current support level we do have a double bottom pattern completion in additon to a bullish RSI divergence - a good sign that price is about to reverse.
All the above give us a clear bullish context in EURUSUD..! This does not mean that is certain that price will head north. Structure changes in no time and our job is to adapt and reconsider our view..!
Like and follow this post as I will continuasly update it when setups make their presence..!
Lastly but no least, feel free to ask to questions and post your ideas so we make this EURUSD idea a big one with a ton of value for the community..!
Afterall if BItcoin is the king of Cryptos, EURUSD is the king of all currencies..!
All the best, John
Daily Chart:
Comment
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Bullish pennant pattern gives us a nice opportunity for a long trade
Hi mate, be very careful when it breaks previous top (1.18521 area). Now im in buy, but aiming that area, because from there im expecting huge move down. But nothing is confirmed, first i will look at how will behave first move up.
So here, is my view. What do you think about that?
Fxprotrader
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@AntonioM, It looks like you do trade waves, right? Your chart looks solid..! In my opinion when price breaks your top u should wait to see if it reverses sharply - then making a correction. That would signal a sell. Otherwise if you see price making impulses to the upside followed by correctives structures you should keep buying and stay in your initial long. I use median line analysis for my TA and what I watch the most is slopes and changes of behavior. We will see how structure develops and we will be fine.. Good luck mate! Thanks for sharing your chart ;)
AntonioM
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@Fxprotrader, yes, im trading wawes. Dont worry, I wont jump into agressive trade without any setup either buy or sell, but thanks for replying me and posting ideas! Good luck mate!
So here, is my view. What do you think about that?