EURUSD | Perspective for the new week | Follow-up details
We witnessed a total of 500pips in our direction since my last publication on this pair (see link below for reference purposes) and it appears the Bears have lost the momentum giving way for a potential rally in the coming week(s). The Euro fell significantly during the course of the last one month to break below Key level @ $1.18500 level, only to turn around with signs of life again during the latter part of last week trading session to break and close above the same Key level. With the recent structure favouring the Euro; participants (buyers) look forward to the coming week(s) with optimism after the ECB decided to let inflation slightly overshoot its 2% target to avoid the risk of premature tightening.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Reversal pattern (Re-test/Rejection)
Observation: i. The Bearish momentum that began in January 2021 broke out of her prevailing direction (Bearish Trendline) on the 22nd of April 2021 to set the pace for what look likes a Trend continuation.
ii. The first major level to hold price "supported" this year (2021) is identified at $1.17000 (31st of March 2021) which is represented on the chart as the Demand zone.
iii. I have hereby tagged this Demand zone a strong level for buyers considering the emphatic run (leading to a Breakout of the Bearish Trendline) that peaked at $1.22650 (over 500pips move).
iv. The Bearish momentum that began on the 26th of May appears to stall @ $1.17850 which also fulfils a re-test pattern of the Trendline Breakout as we witness the buyers picking up momentum from the Demand zone mentioned earlier.
v. In this regard, a confluence is identified at $1.1800 - a point where the Trendline and Demand zone meets to favour a "possible" rally.
vi. We saw the price break and close above $1.1800 (Key level) on the last day of last week trading to reveal a buying momentum at this juncture.
vii. The price MUST remain above the key level to support a Bullish bias in the coming week(s)... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:6
Potential Duration: 5 to 12days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Reversal pattern (Re-test/Rejection)
Observation: i. The Bearish momentum that began in January 2021 broke out of her prevailing direction (Bearish Trendline) on the 22nd of April 2021 to set the pace for what look likes a Trend continuation.
ii. The first major level to hold price "supported" this year (2021) is identified at $1.17000 (31st of March 2021) which is represented on the chart as the Demand zone.
iii. I have hereby tagged this Demand zone a strong level for buyers considering the emphatic run (leading to a Breakout of the Bearish Trendline) that peaked at $1.22650 (over 500pips move).
iv. The Bearish momentum that began on the 26th of May appears to stall @ $1.17850 which also fulfils a re-test pattern of the Trendline Breakout as we witness the buyers picking up momentum from the Demand zone mentioned earlier.
v. In this regard, a confluence is identified at $1.1800 - a point where the Trendline and Demand zone meets to favour a "possible" rally.
vi. We saw the price break and close above $1.1800 (Key level) on the last day of last week trading to reveal a buying momentum at this juncture.
vii. The price MUST remain above the key level to support a Bullish bias in the coming week(s)... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:6
Potential Duration: 5 to 12days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
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