Current Situation:
The price is currently at 1.13869, trading within a resistance zone (indicated by the pink shaded area around 1.13700 - 1.14000).
Previously, the price reacted strongly to this area, leading to a significant drop.
There's a clear upward trend leading into this resistance zone.
Potential Trade Scenarios:
1. Short Entry (Bearish Reversal):
Rationale: The price is at a significant resistance level that has caused a strong bearish reaction in the past. If this resistance holds, we could see a repeat of the previous downtrend.
Entry Signal: Look for clear bearish candlestick patterns (e.g., engulfing pattern, pin bar, or rejection candle) forming within or just below the resistance zone (around 1.13700 - 1.14000). A break and retest of the lower boundary of this resistance could also be an entry.
Target: The next major support zone appears to be around 1.11748 - 1.12000.
Stop Loss: Place the stop loss just above the current resistance zone, perhaps around 1.14200 - 1.14500, to account for potential false breakouts.
2. Long Entry (Bullish Breakout Continuation):
Rationale: If the current bullish momentum is strong enough to break through this resistance, it could signal a continuation of the upward trend.
Entry Signal: Wait for a confirmed breakout above the resistance zone (e.g., a 4-hour candle closing clearly above 1.14000 - 1.14200). A retest of the broken resistance as new support would offer a higher-probability entry.
Target: The next major resistance level is not immediately visible on this chart, but you would look for the next supply zone or previous swing highs.
Stop Loss: Place the stop loss below the broken resistance, which would now act as support, perhaps around 1.13500.
Key Considerations Before Entry:
Confirmation: Do not enter solely based on the price reaching the zone. Always wait for a clear candlestick confirmation or a break and retest.
Volume (if available): Higher volume on a breakout or rejection can add conviction to the move.
News Events: Be aware of any upcoming high-impact news events that could affect EURUSD.
Risk Management: Always define your stop loss and position size before entering any trade.
The price is currently at 1.13869, trading within a resistance zone (indicated by the pink shaded area around 1.13700 - 1.14000).
Previously, the price reacted strongly to this area, leading to a significant drop.
There's a clear upward trend leading into this resistance zone.
Potential Trade Scenarios:
1. Short Entry (Bearish Reversal):
Rationale: The price is at a significant resistance level that has caused a strong bearish reaction in the past. If this resistance holds, we could see a repeat of the previous downtrend.
Entry Signal: Look for clear bearish candlestick patterns (e.g., engulfing pattern, pin bar, or rejection candle) forming within or just below the resistance zone (around 1.13700 - 1.14000). A break and retest of the lower boundary of this resistance could also be an entry.
Target: The next major support zone appears to be around 1.11748 - 1.12000.
Stop Loss: Place the stop loss just above the current resistance zone, perhaps around 1.14200 - 1.14500, to account for potential false breakouts.
2. Long Entry (Bullish Breakout Continuation):
Rationale: If the current bullish momentum is strong enough to break through this resistance, it could signal a continuation of the upward trend.
Entry Signal: Wait for a confirmed breakout above the resistance zone (e.g., a 4-hour candle closing clearly above 1.14000 - 1.14200). A retest of the broken resistance as new support would offer a higher-probability entry.
Target: The next major resistance level is not immediately visible on this chart, but you would look for the next supply zone or previous swing highs.
Stop Loss: Place the stop loss below the broken resistance, which would now act as support, perhaps around 1.13500.
Key Considerations Before Entry:
Confirmation: Do not enter solely based on the price reaching the zone. Always wait for a clear candlestick confirmation or a break and retest.
Volume (if available): Higher volume on a breakout or rejection can add conviction to the move.
News Events: Be aware of any upcoming high-impact news events that could affect EURUSD.
Risk Management: Always define your stop loss and position size before entering any trade.
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.