From the EUR/USD 8-hour chart, there are several important points that can be analyzed to predict potential corrections:
1. Supply (Resistance) Zone
• Price was rejected around 1.14269 – this is strong resistance.
• RSI shows bearish divergence (price increases, RSI decreases), usually a correction signal.
2. Nearest Demand (Support) Zone
• There is a demand/green area in the range of 1.13043 - 1.10860, which is also supported by an uptrend trendline.
• Correction will most likely test this area.
3. Potential Correction Targets:
• First level: 1.13043 (upper end of demand zone)
• Second level: 1.1200s (psychological level & minor support)
• Last level (if breakdown): 1.10860 – 1.09550 (in demand zone + near strong horizontal support)
4. Additional Confirmation:
• Volume starts to decrease as price increases = sign of distribution divergence.
• RSI is still quite high (65s) = room for correction is still open.
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Conclusion:
Correction is reasonable if it falls to the 1.1300 – 1.1080 area. If the price action there shows a bullish reversal (eg: hammer, engulfing, or bullish divergence in RSI), it could be an opportunity to enter buy from the demand zone.
1. Supply (Resistance) Zone
• Price was rejected around 1.14269 – this is strong resistance.
• RSI shows bearish divergence (price increases, RSI decreases), usually a correction signal.
2. Nearest Demand (Support) Zone
• There is a demand/green area in the range of 1.13043 - 1.10860, which is also supported by an uptrend trendline.
• Correction will most likely test this area.
3. Potential Correction Targets:
• First level: 1.13043 (upper end of demand zone)
• Second level: 1.1200s (psychological level & minor support)
• Last level (if breakdown): 1.10860 – 1.09550 (in demand zone + near strong horizontal support)
4. Additional Confirmation:
• Volume starts to decrease as price increases = sign of distribution divergence.
• RSI is still quite high (65s) = room for correction is still open.
⸻
Conclusion:
Correction is reasonable if it falls to the 1.1300 – 1.1080 area. If the price action there shows a bullish reversal (eg: hammer, engulfing, or bullish divergence in RSI), it could be an opportunity to enter buy from the demand zone.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.