EUR50 Forecast And Technical Analysis

0
101
EUR50 Forecast Update And Follow Up

Hi Traders! EUR50 forecast and technical analysis is here. In this post, we are going to perform multi-timeframe technical analysis on this index to find the possible trade opportunities. The platform in which we are going to perform this analysis is on the MetaTrader4(MT4). You can find some useful tips and hacks about the MT4 platform here. Now, let’s start the muti-timeframe analysis.

EUR50 D1(Daily) Chart Analysis – Strong Resistance Zone

On the daily chart, we have a resistance zone that has formed based on the gap zone and the psychological round number 3200. Also while measuring the two waves we have, the 100% fibonacci expansion level of the first wave at 3222 and the 100% fibonacci expansion level of the second wave at 3098 coincides with this resistance zone which makes this area a very strong resistance zone for us. Price still has room higher towards this strong resistance zone. So until price reaches this strong resistance zone my view remains bullish here, we may now move down to lower timeframes and see if we can find evidences supporting this bullish view.

EUR50 Forecast And Technical Analysis

 

 

EUR50 H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Key Support Zone, Downtrend Line Breakout, RSI Indicator, Parabolic Sar

On the H4 chart, we had a bullish trend pattern that had completed itself which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern we may expect corrections and then potential continuation higher. Currently, it looks like the correction that we were looking for has happened in the form of two waves down. The price which was moving lower reached a key support zone formed by the 38.2% (2690) – 50% (2589) fibonacci retracement zones of the bullish trend pattern and the 100% fibonacci expansion level of the first wave at 2651. The price then moved higher and has currently broken above the most recent downtrend line, in addition to this we also had a downtrend line breakout on the RSI indicator as well, also based on the Parabolic Sar the dots are below the price, we may consider these as evidences of bullish pressure. So the bottom line here is that the H4 chart has evidences supporting this bullish view.

EUR50 Forecast And Technical Analysis

 

 

EUR50 H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Bullish Hidden Divergence, Key Support Zone

Looking at the H1 chart we could see that the H4 downtrend line breakout happened in the form of a bullish trending pattern. Currently, it looks like a correction is happening, we have a bullish hidden divergence which has formed between the first low that has formed on 14th May 2020 and the second low that has formed on 19th May 2020 which we may consider as an evidence of bullish pressure. There are two possible scenarios here, the price might move higher directly from the current zone. Or alternatively, if it moves lower then the next area to look for bullish moves with bullish evidences would be the key support zone which has formed by the 38.2% (2847) – 50%(2818) fibonacci retracement zones of the bullish trend pattern.

EUR50 Forecast And Technical Analysis

 

Technical Analysis & Forecast Summary

EUR50 D1(Daily) Chart Analysis

  • Strong Resistance Zone

EUR50 H4(4 Hours) Chart Analysis

  • Bullish Trend Pattern, Key Support Zone, Downtrend Line Breakout, RSI Indicator, Parabolic Sar

EUR50 H1(1 Hour) Chart Analysis

  • Bullish Trend Pattern, Bullish Hidden Divergence, Key Support Zone

 

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.

Also don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join me in my live trading rooms, on daily basis, and improve your trading with us.

Join Traders Academy Club Now

Also you can get one of my strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate

 

To your success,

Vladimir Ribakov
Certified Financial Technician

Click To Join Our Community Telegram Group

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments