Hi Team
Here we have the first of three posts on EURUSD.
Too often we get bogged down by the minutiae of small market movements, not taking into account major market sentiment and long-term trends.
For those of us that use fundamental analysis, this is a potentially fatal mistake.
The lovely thing about EURUSD is that it is the most heavily traded forex pair in the world. This means that a lot of the "noise" is cancelled out, allowing for clear patterns to develop, which are almost always respected. For the most part, with EURUSD what you see is what you get.
When we look hear at the weekly timeframe, a few things become immediately obvious:
1.) Long term descending bear run has ended.
2.) Recent USD volatility has initiated the inevitable stall that leads to a retest of market structure
Once we identify this, it's time to take advantage of the situation.
What it tells us is that:
1.) We are very likely to see a continued bearish downturn to 0.618 Fib of breakout on the daily time frame before we retest.
2.) There will be a long term bull run commencing at some point in the next 1-2 months, once we reject major structure. This is an excellent opportunity for swing trades but requires a lot of patience.
Where do we go from here?
In my next post, we can have a look at the smaller time frame to see where we can enter for short term bear opportunities.
Thanks for reading guys, and as ever, please show some support by liking, commenting, and subscribing.
Good luck, Trade safe
DrBear
Here we have the first of three posts on EURUSD.
Too often we get bogged down by the minutiae of small market movements, not taking into account major market sentiment and long-term trends.
For those of us that use fundamental analysis, this is a potentially fatal mistake.
The lovely thing about EURUSD is that it is the most heavily traded forex pair in the world. This means that a lot of the "noise" is cancelled out, allowing for clear patterns to develop, which are almost always respected. For the most part, with EURUSD what you see is what you get.
When we look hear at the weekly timeframe, a few things become immediately obvious:
1.) Long term descending bear run has ended.
2.) Recent USD volatility has initiated the inevitable stall that leads to a retest of market structure
Once we identify this, it's time to take advantage of the situation.
What it tells us is that:
1.) We are very likely to see a continued bearish downturn to 0.618 Fib of breakout on the daily time frame before we retest.
2.) There will be a long term bull run commencing at some point in the next 1-2 months, once we reject major structure. This is an excellent opportunity for swing trades but requires a lot of patience.
Where do we go from here?
In my next post, we can have a look at the smaller time frame to see where we can enter for short term bear opportunities.
Thanks for reading guys, and as ever, please show some support by liking, commenting, and subscribing.
Good luck, Trade safe
DrBear
