EURUSD buyers resume despite rate hike anticipation
If you take a look at sell-off, it seems as if price found support at a previous resistance zone that has broken out. Shortly after this, price broke through the zone signifying that the support zone is not holding up. Price is currently testing the zone once again on a bullish 30~ pips open. This is a very high reward to risk short entry. Your stop can be placed above the resistance zone provided that it doesn't hold up. The profits are literally endless given the magnitude of the rate hike. Of course, postponing the rate hike will definitely send the EURUSD pair higher as it demonstrates a lack of strength in the U.S. economy.
Let's not forget that this bullish move is also touching an ascending trend-line. Since this is a 4-Hour chart, I would say the next 12 hours to 16 hours are critical to see how price reactions as it consolidates between the ascending trend-line and resistance zone. I do not expect this trend-line to play a crucial role in the price action. The rally 1.1021 price level formed this trend-line and so was not an actual test hence why I do not see a strong trend here.
Let's not forget that this bullish move is also touching an ascending trend-line. Since this is a 4-Hour chart, I would say the next 12 hours to 16 hours are critical to see how price reactions as it consolidates between the ascending trend-line and resistance zone. I do not expect this trend-line to play a crucial role in the price action. The rally 1.1021 price level formed this trend-line and so was not an actual test hence why I do not see a strong trend here.