EUR/USD Looking For A Bullish Confirmation Bounce On Support
Looking at trading EUR/USD.
We are on the 4-Hour Chart.
As we can see, the price has been pushing downwards recently. Some would say we have broken out of a 4-hour ascending channel.
I'm looking at the support around the 1.01 price point.
We can see that this area was flipped from resistance to support and has bounced off of this zone every time we have come close to it. Does this mean that it will bounce off of this area again?
We cannot assume that if the price touches this previous support level that price will bounce off of it and head back up.
We need some sort of tradeable pattern or bullish confirmation entry that will help give us confidence and confluence to enter into a long position.
A bullish engulfing candle at the bottom of this support zone would be ideal.
We would also need to see strong volume accompany this engulfing candle.
If the price breaks through this support zone and closes below, I will then start to look for short setups using that area that would then be flipped from support to new resistance. But we are not there yet.
Let's keep our eye on the ball and wait for an entry.
If we get our possible long position setup, I would suggest the price area of 1.025 as a good target area as we can see that this area has been respected in the past as resistance.
Looking at the daily chart, we can see that the overall bias is still bearish. We have not broken out of that giant daily descending trend line, but on the 4-hour we are still trying to make higher highs and higher lows.
This is why I am using the 1.01 price point as the make-it-or-break-it support level. If that level breaks, then we are officially looking for short positions again.
Let's keep our eyes peeled.
Hope you all have a great day.
The Vortex Trader.
We are on the 4-Hour Chart.
As we can see, the price has been pushing downwards recently. Some would say we have broken out of a 4-hour ascending channel.
I'm looking at the support around the 1.01 price point.
We can see that this area was flipped from resistance to support and has bounced off of this zone every time we have come close to it. Does this mean that it will bounce off of this area again?
We cannot assume that if the price touches this previous support level that price will bounce off of it and head back up.
We need some sort of tradeable pattern or bullish confirmation entry that will help give us confidence and confluence to enter into a long position.
A bullish engulfing candle at the bottom of this support zone would be ideal.
We would also need to see strong volume accompany this engulfing candle.
If the price breaks through this support zone and closes below, I will then start to look for short setups using that area that would then be flipped from support to new resistance. But we are not there yet.
Let's keep our eye on the ball and wait for an entry.
If we get our possible long position setup, I would suggest the price area of 1.025 as a good target area as we can see that this area has been respected in the past as resistance.
Looking at the daily chart, we can see that the overall bias is still bearish. We have not broken out of that giant daily descending trend line, but on the 4-hour we are still trying to make higher highs and higher lows.
This is why I am using the 1.01 price point as the make-it-or-break-it support level. If that level breaks, then we are officially looking for short positions again.
Let's keep our eyes peeled.
Hope you all have a great day.
The Vortex Trader.