EURUSD | Perspective for the new week | Follow-up details
With over 100pips in our direction since my last publication (see link below for reference purposes); we witnessed a successful breakout of the supply zone to set the tone for a potential rally at least in the meantime.
It is no news that the USD collapsed against the major pairs during last week trading session, and the catalyst for this scenario is the US inflation as the Consumer Price Index was confirmed at 7% YoY in December - the highest since 1982. In this regard, I still maintain a bullish perspective at least to a 61.8% retracement of Bearish Impulse leg on the weekly chart.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Trendline
Observation: i. Since hitting bottom @ $1.12 on the 24th of November 2021, we have noticed a gradual bullish momentum as the price continue to find higher lows which culminated in a successful breakout of the Supply zone and Key level @ $1.135 to give the bulls a favourable environment to add to their existing position.
ii. Spiced up by poor US data released throughout the week, the price continues to respect the Bullish trendline.
iii. Trendline indicated on the chart is the visual representation of a line drawn under pivot lows which reveals the prevailing direction and speed of price action in the last 47 days.
iv. The breakout of the key level was met with rejection at $1.148 which gives me a sign that we might be witnessing a retracement of the impulse leg.
v. So, with this information; I am looking forward to the completion of retracement around my new demand level cited around $1.12850/$1.135 to join the rally.
vi. However, it is worthy to state here that should price decide not to go as far as the new demand level identified then a bullish reversal set up on a lower time frame could be a signal we should be looking out for in the coming week to long... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:3.5
Potential Duration: 4 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
It is no news that the USD collapsed against the major pairs during last week trading session, and the catalyst for this scenario is the US inflation as the Consumer Price Index was confirmed at 7% YoY in December - the highest since 1982. In this regard, I still maintain a bullish perspective at least to a 61.8% retracement of Bearish Impulse leg on the weekly chart.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Trendline
Observation: i. Since hitting bottom @ $1.12 on the 24th of November 2021, we have noticed a gradual bullish momentum as the price continue to find higher lows which culminated in a successful breakout of the Supply zone and Key level @ $1.135 to give the bulls a favourable environment to add to their existing position.
ii. Spiced up by poor US data released throughout the week, the price continues to respect the Bullish trendline.
iii. Trendline indicated on the chart is the visual representation of a line drawn under pivot lows which reveals the prevailing direction and speed of price action in the last 47 days.
iv. The breakout of the key level was met with rejection at $1.148 which gives me a sign that we might be witnessing a retracement of the impulse leg.
v. So, with this information; I am looking forward to the completion of retracement around my new demand level cited around $1.12850/$1.135 to join the rally.
vi. However, it is worthy to state here that should price decide not to go as far as the new demand level identified then a bullish reversal set up on a lower time frame could be a signal we should be looking out for in the coming week to long... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:3.5
Potential Duration: 4 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Comment:
Weekly perspective indicating the bearish impulse leg:
Trade smart. Trade consciously
