EURUSD Analysis : Daily/H4
Moving Averages:
The 20-period EMA (green line) and 50-period EMA (orange line) are closer to the price and show short to mid-term trend directions.
The 200-period EMA (red line) represents the longer-term trend.
Currently, the price is above the 200 EMA, indicating a bullish long-term trend.
Relative Strength Index (RSI):
RSI is slightly below 50 (48.05), indicating a neutral or weakening momentum. This suggests a period of consolidation or a potential reversal.
MACD:
The MACD line is crossing below the signal line, hinting at a possible bearish signal.
Resistance Levels:
The nearest resistance zone appears to be around 1.1150, where the price was recently rejected. This level aligns with the recent peak.
The next significant resistance is around 1.1250, which is a key level from past market behavior.
Support Levels:
Immediate support is found near 1.0950, close to where the 50-period EMA (orange line) is.
A stronger support lies around 1.0850, where the 200-period EMA (red line) aligns, and where price found support previously.
Buy Opportunity: If the price pulls back to the 1.0950 or 1.0850 support area and holds, it could be a good opportunity to buy, especially if confirmed by a reversal pattern (e.g., a bullish engulfing candle) and a positive crossover on the MACD.
Sell Opportunity: Given the weakening momentum on the MACD and RSI below 50, a break below 1.0950 could signal a selling opportunity. In that case, targeting 1.0850 for short-term profit would make sense.
Trend Following (Pullback Strategy):
If the price pulls back to 1.0950 or 1.0850, wait for confirmation (e.g., a bullish candle pattern) and enter a buy trade.
Set the stop loss below 1.0850 (preferably around 1.0800) in case of a false breakout.
First target would be 1.1150, with the second target around 1.1250 if the uptrend continues.
This strategy aligns with the long-term bullish trend indicated by the 200 EMA.
MACD + EMA Strategy:
Enter a short position if the price breaks below 1.0950, with MACD confirming a bearish signal (negative crossover).
Set the stop loss above the 50 EMA (around 1.1000).
First target would be 1.0850, with a potential extension to 1.0750 if bearish momentum increases.
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