Skip to main content

EURUSD bullish setup

The three consecutive price lows in EURUSD combined with non confirmation from the RSI is a bullish setup. This bullish divergence pattern most of the times points to a reversal. That is why I turn short-term bullish at least for EURUSD looking for a bounce towards 1.11 at least.

analytics5de217f496b34.png

Red lines - bullish divergence

Orange rectangle - support area

EURUSD has not broken below the orange support area. Support is critical in this Fibonacci retracement level and as we previously mentioned, at the 61.8% Fibonacci retracement the chances of a trend reversal are high. The bullish divergence in the 4 hour chart supports the bullish scenario for a bounce towards 1.11. We are bullish EURUSD as long as price is above this week’s lows. A weekly close above 1.1060 will increase the chances of pushing above 1.11 even towards 1.12-1.13 over the coming weeks. For this to hold support must hold at 1.10-1.0990.

The material has been provided by InstaForex Company - www.instaforex.com
via EURUSD bullish setup
Labels:

Comments

Post a Comment

Popular posts from this blog

GBPUSD up and down. Back down testing 61.8% and swing area.

# GBPUSD tests 61.8% and swing area The GBPUSD is in an up and down day. The    GBPUSD  moved higher earlier. That move was helped by better than expected retail sales. However the high price today stalled near the high price from last week near 1.3643, and rotated back lower on the USD buying. The subsequent move lower now has the price back toward the 61.8% retracement along with a swing area between 1.35969 and 1.36034. As I type, the price has dipped below that swing area. What next? If the price can stay below the 1.36034 area, that would be the best case scenario for the sellers with the next major targets coming in at the 100 hour moving average 1.3569 (blue line), and the 200 hour moving average at 1.35609 (green line). The 50% midpoint of the 2022 trading range is just below those levels at 1.35526 and would be a another target on further weakness. A move back above 1.36034 with momentum would have traders looking again toward 1.3618 to 1.36271 and then t...
Post a Comment
Read more