In this chart, I have defined Monthly and Weekly Support and Resistance Zones. The reason I define the time frame of S&R is because the higher time frames hold more strength. The reason for this is because there are larger institutional players in the markets at these levels and in some cases, governments and central banks.
With that said, here are the steps my model has outlined for this market:
1. A pullback up to test the Weekly Resistance Zone (1.22466-1.23647). This move is a correction of the move down to the Monthly Support Zone.
2. A continuation of the move down to the Monthly Support Zone (1.10223-1.07625). This move is a correction of the move up starting in Jan 2017.
3. Once the Monthly Support Zone is tested, the EUR will continue its move up beyond the Weekly Resistance Zone and on its way to TG 1-4 outlined on the chart. These targets are defined on a Monthly Time Frame.
Please refer to the related chart below for a closer look at this current move down.
I agree with your bullish view on EURUSD. Our trading signal idea is also of the same bias. If it surpasses its resistance at 1.1788, we believe it might move up to its next resistance at 1.1843. Here’s our idea!