EURUSD - H4 (Long order)

FX:EURUSD   Euro / U.S. Dollar
EURUSD is a potential buy!

Price tested the support line at 1.13372 before and then the market pushed up. It then held the resistant line at 1.15614 and then the market pushed down. Minimal convergence/divergence at 1.13915 (0.618) but then price broke through and continued a downtrend. We are looking for a long order to complete wave 3!
- Wait for confirmation candle to indicate where the market may go

Thoughts Expansion...

  • Elliot Wave Analysis - wave 1 has been completed. Wave 2 to retest support line and push off into an uptrend. If price retraces and holds at .618; then this will be a continuation of a downtrend. Therefore look for a short order. Wait for confirmation candle to be sure.
  • Harmonic Pattern - double bottom formed a bearish bat pattern which pushed the market down before going to an uptrend.

Conclusion - wait for price to test the support line before entering a long order in the market!

All the best!