Hi Traders! EURUSD short term bearish and mid term bullish opportunity forming at the moment. A detailed analysis of this double scenario is as follows:
EURUSD D1 Chart:
On the daily chart the price is moving inside a channel, this channel is formed by the highs and lows reaching parallel resistance and support zones. The price which is respecting this channel so far has currently nearing the bottom of this channel, if we didn’t get a valid breakout here we may then expect the price to respect this bottom of the channel and move higher again. We also have potential bullish divergence that has formed which we may consider as an evidence of bullish pressure.
EURUSD H4 Chart:
On the H4 chart based on the fibo levels of the cycles and the bottom of the daily channel, we have two critical zones that has formed. In addition to this we also have bullish divergence that has formed which we may consider as an evidence of bullish pressure.
EURUSD H1 Chart:
On the H1 chart in the mid term we now expect one more push lower towards the first critical zone with bullish divergence to form, we may then start looking for buys with more bullish evidences. Alternatively if the price moves lower further then the next area to look for buys with bullish evidences would be the second critical zone.
Short term sell opportunities are possible here until we get any bullish evidences. We may now look for evidences of bearish pressure in order to join the bears
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell and buy setup then you can use any setup and strategy that you have in your arsenal to look for bearish and bullish moves and join this sell and buy trade.
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