EURUSD | Stronger Euro? (Medium-term) | 23 Feb
Looking at the EURUSD, obviously the overall trend is still bearish. As you can see on the daily timeframe we’ve had a long sequence of bearish candles. The main reason of the Euro dropping is due to the spread of the Corona virus in Europe. We can notice that on Friday, the market has started to consolidate between 1.781 and 1.831. It looks like it has finally found its support area at 1.781.
The last daily candle has broke above the consolidation area, and that is a vital indicator for us. We may expect further bullish momentum. BUT, we can’t take a trade by only looking at the higher time frames. We must also look at lower time frames. Thus, by looking at the 4H chart you will notice a resistance area at 1.08623. You will also notice a trendline. According to these indications, you should only be taking buys on the breakout of the trendline and resistance, otherwise we don’t have enough confirmation for buys.
Trade with care.
The last daily candle has broke above the consolidation area, and that is a vital indicator for us. We may expect further bullish momentum. BUT, we can’t take a trade by only looking at the higher time frames. We must also look at lower time frames. Thus, by looking at the 4H chart you will notice a resistance area at 1.08623. You will also notice a trendline. According to these indications, you should only be taking buys on the breakout of the trendline and resistance, otherwise we don’t have enough confirmation for buys.
Trade with care.
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