The price of EURUSD has dropped lower as the USD gained strength. But now the price is at support, will the market rally or break lower?

Watch the video to learn more…

USD Index 

The USD Index price on the daily time frame has recently formed a bearish engulfing candle at resistance suggesting that we could see a short term reversal.

If the daily is going into a retracement phase we should see lower lows and lower highs on the 4hr time frame. 

If the price then forms a bearish rejection of the lows we can assume a lower high is forming and we can look to short the USD . 

EURUSD Support

As we can see from the EURUSD chart the price on the daily time frame has formed a bullish engulfing candle at support. This in line with the USD Index could highlight a potential short term rally. 

The daily retracement phase here should produce higher highs and higher lows on the 4hr time frame. 

EURUSD 4hr Trend

 The 4hr trend should form a higher low if the market is in a retracement phase. Currently the price would need to form a strong bullish rejection of the recent consolidation zone. 

If this occurs we can look for long opportunities in the short term on a lower time frame. 

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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