Categories: Technical Analysis

Bullish convergence in EURUSD creates buy opportunity

Pair created bullish convergence on the Daily chart for the first time after the long bearish move and this is why I think we should be looking for buy opportunities. The plan here is very simple. We drop down to the H4 chart and
we should be looking for a double wave correction. Ideally the correction should be completed between 1.1050 down to 1.09. There is also a bullish trend line coinciding with this range which will be a great extra confirmation as a dynamic support level. There is hidden bullish divergence on the H4 chart which puts bullish pressure on the pair already already.

Technical Analysis Overview:

D1 – bullish convergence

H4 – bullish hidden divergence, up trend line, support zone, potential double wave correction

Entry:

H4 – Look for double wave correction down and go for a buy. Best would be if the price reaches a strong support zone when the correction completes. Ideal levels for an entry are between 1.1050 – 1.0900. More conservative approach would be with the break of the down trend line well spotted on the H1 chart along with the most recent resistance level.
Target 1: 1.1270
Target 2: 1.1450
Stop Loss: below the closest H4 support (up trend line)

EURUSD H1 Chart

EURUSD H4 Chart

Video Explanation

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

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