Potential LONG opportunity EURUSD

FX:EURUSD   Euro Fx/U.S. Dollar
On the daily timeframe there is a bullish engulfing candle for yesterdays price action.

Since mid- April this pair has been in a bullish uptrend establishing higher highs and higher lows.

Price has already made a higher low, which is the second touch of the bullish trendline at ~1.0820. Therefore it is likely for the pair to create a new higher high, HOWEVER, price is capped by the resistance from the overall bearish trendline which starts from where price was in mid- December 2014.

If price does break the current zone of resistance, then highs of 1.1450 can be expected (previous high from May)/ the psychological round number resistance of 1.15000.

On the 4 hour chart, the moving averages look like they are to cross over to the upside.

To enter LONG, it will be better to wait for price to break current resistance.

On the other hand, another option could be to wait for a potential retracement (H4) as shown by the arrows, before entering long.

If price does break the 38.2% fib, it may warrant a short move targeting the 76.4% fib, which is confluent with previous support & resistance , as well as being a third touch of the bullish trendline .

Keep us posted! Nice analysis.
SMHuss3 timwest
Thank you!
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