The EURUSD could be retracing back to the key 1.1700 level as the USD weakens. This could offer us swing trading opportunities.
Watch the video to learn more…
The Weekly Chart
In our recent Week Ahead Analysis video we discussed the potential for the USD index to move lower in line with the USD weakness and CoT report data. The EURUSD is nearly identical to the price action of the USD index but inverse as the USD Index is heavily weighted to the EURO.
The weekly false breakout pattern on the USD Index offered us short opportunities on that market but also long opportunities on EURUSD.
Looking at the weekly chart we can see that the market is in a downward trend but in a retracement phase. This should offer swing trading opportunities back to resistance if the lower time frames can form higher highs and higher lows.
The 4hr Chart
The 4hr chart shows the bullish mid term trend as the market forms higher highs and higher lows. If the price can retest the previous 4hr swing highs we could look for a long opportunity in line with a swing trading strategy.
One strategy we could use is an hourly close above the 50 EMA. When the 4hr is in an upward trend we want to look for a retracement back to a support zone. When the price gets to the support zone we look for the market to break above and close above the hourly 50 EMA for a long position.
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