Hi Traders! EURUSD forecast update and follow up is here. On August 18th I shared this EURUSD Technical Analysis And Forecast post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
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Now let’s summarize the idea first:
My idea here was “Looking at the H4 chart we could see that the price is moving inside a range and is currently at the top of it. In addition to this, we have a potential continuing bearish divergence that is forming at the moment. One of the possible scenario’s here would be, we may expect the price to respect the top of this range move lower and provide a valid breakout below the most recent uptrend line. If that happens then that would be a good sign for the bears and would increase the bearish pressure”.
EURUSD H4(4 Hours) Chart Current Scenario
On the H4 chart, the price created a false break at the top of the range, and then it moved lower and broke below the most recent uptrend line thus validating the bearish view. The price then moved lower further delivering 130+ pips so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
On the H1 chart after the validation of the bearish view which happened in the form of the H4 uptrend line breakout. The price retested this breakout and then we had a bearish engulfing candle pattern. We may consider these as facts provided by the market supporting the bearish view. The price then moved lower further providing a fantastic move to the downside.
EURUSD H1(1 Hour) Chart
In trading, there are various important factors that we need to pay attention to, just because we have a good setup doesn’t mean that we can enter the trade randomly and it will pay us huge profits. First of all, we need to validate the entry and we should have a perfect entry plan to get into the trade which is a key factor when it comes to trading. This EURUSD forecast is a perfect example of this scenario.
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To your success,
Vladimir Ribakov
Certified Financial Technician
