Here are my reasons for a EURUSD long to 1.289
1. Trend Lines: The weekly charts, I simply plotted and the past few weeks, price has been flirting with this old .
2. Failure Swing: My uses 85 and 25. Traditional rules for failure swing is for a drop below 30, bounce above 30 and then a pull back holding above 30. Long on break of the interim peak. Applying this to 25 level, you get the same thing.
3. (not shown on chart): show price making lower lows while keeps making higher highs. With such lows being made, I see that the divergence is now ready to push prices higher.
4. show (3 consecutive up days right near the bottom) with a decline yesterday. Appearance of this near a long term support that EURUSD has failed to break gives some validation.
This trade goes in line with USDCHF shorts I published a while back.
*Note: Publishing this chart a bit prematurely as a weekly close could offer a better bias.
*Note: So far daily is picking up to form a piercing line formation
*Note: Last Friday of the trading month, should see some profit booking in USD
*Note: I exited my short positions across EUR crosses. This is just a case study and does not imply to be a trade recommendation.
At a macro level (monthly chart) there is a possibility of a larger Cypher or Shark pattern happening very soon, i am looking for slightly better buy signals on the LTF, not just a weekly piercing candle