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
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