EURUSD Displaying 2/3 Market Movements

FX:EURUSD   Euro / U.S. Dollar
The EURUSD has had a prolonged downtrend with lower highs and lower lows and then began to range at the support zone of 1.1065 which we get form the daily chart . It failed to break below this level to confirm a lower high on the daily chart . You can see on the daily chart we did make an engulfing candle.

However, I approach it with market theory. Markets only move in 3 ways, and we have seen 2/3 with the downtrend and range. Uptrend is the only one left.

You can see we had a very substantial strong 4 hour candle breaking above the range and even above the lower high established on the 4 hour chart. Technically, the close would be a good entry, however I would not want to enter and hold over the weekend. Don't like Friday breaks.

Come Monday, be patient and let us see if we can make our first higher low to establish that we are in an uptrend now. This can possibly come with a retest of the break out point.

1.1220 would be first TP.
We would wait for a retracement before going long,I'm thinking a 618 retracement would be advisable
+1 Reply
@Threadz, Yes! Probably would not want to chase price right now, just wait for the pullback and higher low.
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