This is what you need to catch the next EUR/USD Bullish Move
Good Morning, traders! Today we will show you an in-depth analysis of the EUR/USD to explain how we would look for a bullish opportunity and why. This analysis is Top-Down; that is, we will include several timeframes to cover from the long term to the short term.
We are going to start with the chart with the higher timeframe.
This is the 2 Weeks chart:
🔸We see here that in the last year, the price is in a clear upward momentum, which even generated a break in the Descending Channel. Given this situation, we consider that the trend should continue UNTIL the price reaches the 1.2500 area. If we look in the past, the price found interesting supply in this area, so we expect similar behavior. While it may just be a corrective move and not a trend reversal, the zone is worth keeping in mind.
Daily Chart:
🔸In the Daily Chart, we focus on analyzing the current trend. We see that it is clearly bullish and is within a channel. The price broke the consolidation process that lasted a few months and is now in a small correction in the resistance zone.
🔸Given these two visions, if we reduce the timeframe a little more (8h, which is the published chart), we can look for a potential entry into the market. As we explained previously, in the resistance zone, there is a correction, and this correction is an evident flag pattern, which is a bullish continuation pattern. The safe way to take a trade here is to wait for a breakout of the pattern and look for an entry above the previous internal high of the structure. If this happens, we may be in front of the next bullish momentum. The target of the movement we propose is the next resistance zone at 1.25000.
We are going to start with the chart with the higher timeframe.
This is the 2 Weeks chart:
🔸We see here that in the last year, the price is in a clear upward momentum, which even generated a break in the Descending Channel. Given this situation, we consider that the trend should continue UNTIL the price reaches the 1.2500 area. If we look in the past, the price found interesting supply in this area, so we expect similar behavior. While it may just be a corrective move and not a trend reversal, the zone is worth keeping in mind.
Daily Chart:
🔸In the Daily Chart, we focus on analyzing the current trend. We see that it is clearly bullish and is within a channel. The price broke the consolidation process that lasted a few months and is now in a small correction in the resistance zone.
🔸Given these two visions, if we reduce the timeframe a little more (8h, which is the published chart), we can look for a potential entry into the market. As we explained previously, in the resistance zone, there is a correction, and this correction is an evident flag pattern, which is a bullish continuation pattern. The safe way to take a trade here is to wait for a breakout of the pattern and look for an entry above the previous internal high of the structure. If this happens, we may be in front of the next bullish momentum. The target of the movement we propose is the next resistance zone at 1.25000.