EURUSD Overall Bearish Bias BUT chance to enter a Long Position.
Monthly/Weekly
-Price formed a double bottom , then made a huge bullish push.
-It finally met resistance and has now began its retracement, usually after a double bottom formation we expect price to retrace and test the neckline.
-After drawing the Fibonacci from a low to a high, you will notice the neckline lines up with the 50.0-61.8 fib level along with a support/demand zone.
Daily
-After meeting resistance at the weekly/monthly, supply/resistance zone price began its bearish move.
-Price broke pass the former daily support zone which will now act as a daily resistance.
-Since price broke below that area, I am expecting price to retest this area before possibly continuing its move to the downside.
-Drawing a Fibonacci from the high to the low, the 38.2 fib level also aligns with the daily resistance. Here is where I will look to enter sell if there are confirmations of a potential sell.
-BUT when drawing Fibonacci a retracement and respecting of the levels 50.0-61.8 offer a strong confirmation, so price may potentially retrace here.
There is also bullish divergence which can serve as a confirmation that price appear to be ready to make its retracement to one of the fib levels (38.2,50.0,61.8) or my daily resistance/supply zone.
-Price formed a double bottom , then made a huge bullish push.
-It finally met resistance and has now began its retracement, usually after a double bottom formation we expect price to retrace and test the neckline.
-After drawing the Fibonacci from a low to a high, you will notice the neckline lines up with the 50.0-61.8 fib level along with a support/demand zone.
Daily
-After meeting resistance at the weekly/monthly, supply/resistance zone price began its bearish move.
-Price broke pass the former daily support zone which will now act as a daily resistance.
-Since price broke below that area, I am expecting price to retest this area before possibly continuing its move to the downside.
-Drawing a Fibonacci from the high to the low, the 38.2 fib level also aligns with the daily resistance. Here is where I will look to enter sell if there are confirmations of a potential sell.
-BUT when drawing Fibonacci a retracement and respecting of the levels 50.0-61.8 offer a strong confirmation, so price may potentially retrace here.
There is also bullish divergence which can serve as a confirmation that price appear to be ready to make its retracement to one of the fib levels (38.2,50.0,61.8) or my daily resistance/supply zone.
