On 12 July 2019 the EUR/USD currency pair, on the H4 time-frame, was discussed and the conclusion was that there is a possible new uptrend in the making. This was based on the interpretation of three technical analysis indicators and a candle pattern. The conclusion was in line with what technical analysis is all about, namely to study market action using price charts for the purpose of identifying a new trend in its early stages (Technical analysis of the financial markets, John J Murphy, 1999, p.3). These areas are where the risk reward ratio is most in our favor. Combined with good money management like managing risk by taking partial profits at various Fibonacci extension levels and the discipline to consistently apply it over time, can produce a net profit over a series of trades.
Later in the session the support level at 1.12452 was broken by two candles but both candles close above the support and demand again overcame supply.
This means the original analysis with the possible entry, account protection level and take profit targets are still intact and the important information is repeated below:
If the EUR/USD breaks through the critical resistance level at 1.12870, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.12870 and dragging it to a possible support level at 1.12452, the following targets may be calculated. The first target can be anticipated at 1.13128 (161 %). The second price target can be predicted at 1.13546 (261.8%) and the third and final target may be expected at 1.14223 (423.6%).
If the bottom at 1.12452 is convincingly broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the EUR/USD currency pair on the H4 time-frame will remain bullish.
Later in the session the support level at 1.12452 was broken by two candles but both candles close above the support and demand again overcame supply.
This means the original analysis with the possible entry, account protection level and take profit targets are still intact and the important information is repeated below:
If the EUR/USD breaks through the critical resistance level at 1.12870, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.12870 and dragging it to a possible support level at 1.12452, the following targets may be calculated. The first target can be anticipated at 1.13128 (161 %). The second price target can be predicted at 1.13546 (261.8%) and the third and final target may be expected at 1.14223 (423.6%).
If the bottom at 1.12452 is convincingly broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the EUR/USD currency pair on the H4 time-frame will remain bullish.