The price of EURUSD has finally broken out of a consolidation we covered in our previous forex week ahead analysis video. Now this has happened, can we start to look for buying opportunities on the major currency pair?
Watch the video to learn more…
EURUSD- Daily Time Frame
The EURUSD price has now broken out of the channel we talked about in the week ahead analysis. The recent USD sell off has helped fuel the EURUSD price and we can now start to think about looking for long opportunities.
When the market breaks out of these consolidation it can be easy to jump on and try and catch the breakout however these can often lead to false breakouts so we need to see a second close above the trendline resistance to confirm the break.
EURUSD- Daily Pullback
In theory if the market was going to impulse higher on the weekly timeframe we would see the daily timeframe form higher highs and higher lows.
This means we should expect to see a retracement or pullback on this daily timeframe, patience is the aim of the game with this one as we need to see a pullback.
If the market forms low ranging bearish candlesticks we can look for signs of a bullish reversal setup for a swing trading opportunity.
The 4hr Timeframe
The 4hr timeframe is making higher highs and higher lows in line with the impulse daily phase.
If this trend is going to continue we could look for a retracement back to the previous structure highs for a long opportunity if the price forms reversal patterns such as a double bottom or inverse head and shoulders.
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