EUR/USD: detailed chart breakdown. Where are we headed next?
Firstly, zooming out and looking at higher-timeframe graphs, we may clearly see that the overall trend remains bearish.
Now, zooming in and observing the recent price action, it can be noticed how bullish impulsive moves kicked in last week before market closure and drove the price up. By doing this, a key zone has been formed at the area of 0.981, and the price has recently rejected this zone. From here, it is expected for the price to experience a short-term rise and reach the area plotted on the graph. Why this zone specifically? Because it is right at the area of the freshly formed double top that lines up with the 61.8% Fibonacci retracement level as illustrated on the 8h-timeframe graphic. Technically, all early entrants have their Stop Loss order placed around this particular zone.
Hence the forecast. The price spiking up and re-touching the 0.988 - 0.99 area and dropping all the way down till the higher-timeframe Lower Low is the scenario that we are eyeing.
Of course, we will be patient and monitor the situation. If the price plays out according to the plan, we will execute a probable 1:5 - 1:7 risk-to-reward trade and look forward to benefiting from this amazing opportunity
Now, zooming in and observing the recent price action, it can be noticed how bullish impulsive moves kicked in last week before market closure and drove the price up. By doing this, a key zone has been formed at the area of 0.981, and the price has recently rejected this zone. From here, it is expected for the price to experience a short-term rise and reach the area plotted on the graph. Why this zone specifically? Because it is right at the area of the freshly formed double top that lines up with the 61.8% Fibonacci retracement level as illustrated on the 8h-timeframe graphic. Technically, all early entrants have their Stop Loss order placed around this particular zone.
Hence the forecast. The price spiking up and re-touching the 0.988 - 0.99 area and dropping all the way down till the higher-timeframe Lower Low is the scenario that we are eyeing.
Of course, we will be patient and monitor the situation. If the price plays out according to the plan, we will execute a probable 1:5 - 1:7 risk-to-reward trade and look forward to benefiting from this amazing opportunity
