EUR/USD: HTF perspective. A correctional move is on the way!
New week, new chart analyses from Investroy!
Today, we are taking a look at the situation that is present on EUR/USD.
Taking a look at the WEEKLY(W) timeframe graphic, it can be observed that the price has printed some serious impulsive moves to the upside in the previous couple of weeks. The descending channel pictured on the chart has finally been broken and bears are strongly concerned.
Zooming into the DAILY(D) timeframe graph, it can be inferred that the price is currently in the process of rejecting a crucial level of resistance and is most likely planning to correct the recent impulsive moves by making its way down to the 1.01 area of previous resistance which now acts as a support that lines up wit the 0.618 Fibonacci retracement level.
Now, the main question: when to enter?
Well, observing the current situation, we can examine that the price has already started printing bearish candles. However, we don't believe that the correctional phase has started as of yet due to the fact that a solid top reversal pattern has not yet been fully formed. We would expect for the price to spike a couple of pips above the local zone of resistance, grab liquidity by taking out the early trade entrants, and then prepare to launch its full-scale bearish moves.
Have a great trade and remember to follow the risk management plan!
Today, we are taking a look at the situation that is present on EUR/USD.
Taking a look at the WEEKLY(W) timeframe graphic, it can be observed that the price has printed some serious impulsive moves to the upside in the previous couple of weeks. The descending channel pictured on the chart has finally been broken and bears are strongly concerned.
Zooming into the DAILY(D) timeframe graph, it can be inferred that the price is currently in the process of rejecting a crucial level of resistance and is most likely planning to correct the recent impulsive moves by making its way down to the 1.01 area of previous resistance which now acts as a support that lines up wit the 0.618 Fibonacci retracement level.
Now, the main question: when to enter?
Well, observing the current situation, we can examine that the price has already started printing bearish candles. However, we don't believe that the correctional phase has started as of yet due to the fact that a solid top reversal pattern has not yet been fully formed. We would expect for the price to spike a couple of pips above the local zone of resistance, grab liquidity by taking out the early trade entrants, and then prepare to launch its full-scale bearish moves.
Have a great trade and remember to follow the risk management plan!