EUR/USD Double Bottom OR Short Order Block Entry
Looking at trading EUR/USD today. We have a potential double bottom formation on the 4-hour chart. Remember, we are currently at major major support levels. The fact that the euro is less than one to one with the dollar is incredibly unsettling. So, we know that we have a major fight currently happening between the bears and the bulls.
I have highlighted the neckline in yellow and I would like to see strong volume show up to accompany a close above this zone. We can also see that we are currently sitting against a descending trend line and it is very possible that we could bounce off of this region, get rejected, and carry on lower.
There is also an order block that we have currently pierced that could give us a target of 1 / 8 Risk to reward if we were shorting. So there's one awesome opportunity.
However, if we were looking for a long setup, we have the full divergence across the MACD histogram as well as the MA lines which dd confluence to the setup.
We just need that volume to show up. Once we see a close above the neckline zone, I would be waiting for a retrace back into the neckline zone, which would coincide nicely with flipping the trend line to support resistance. This would trigger a long entry with two targets up above.
Target number one would be the 1.01 price level.
Target number two would be the 1.02 price level.
Remember, going long right now is trading counter-trend. We must be certain and need all the stars to align in our bag of rules and criteria.
I also would not risk my usual amount on a counter-trend position.
Let's keep an eye out and watch what happens.
Hope you all have a great day
I have highlighted the neckline in yellow and I would like to see strong volume show up to accompany a close above this zone. We can also see that we are currently sitting against a descending trend line and it is very possible that we could bounce off of this region, get rejected, and carry on lower.
There is also an order block that we have currently pierced that could give us a target of 1 / 8 Risk to reward if we were shorting. So there's one awesome opportunity.
However, if we were looking for a long setup, we have the full divergence across the MACD histogram as well as the MA lines which dd confluence to the setup.
We just need that volume to show up. Once we see a close above the neckline zone, I would be waiting for a retrace back into the neckline zone, which would coincide nicely with flipping the trend line to support resistance. This would trigger a long entry with two targets up above.
Target number one would be the 1.01 price level.
Target number two would be the 1.02 price level.
Remember, going long right now is trading counter-trend. We must be certain and need all the stars to align in our bag of rules and criteria.
I also would not risk my usual amount on a counter-trend position.
Let's keep an eye out and watch what happens.
Hope you all have a great day