Technical Analysis – EURUSD Buy Idea After Trend Line Breakout

2
263
Technical Analysis - EURUSD Buy Idea After Trend Line Breakout
Traders Academy Club - Learn How Trader Earns! VIP Membership Club for Traders by Vladimir Ribakov

Hi Traders! Today in this technical analysis post we are going to discuss about the EURUSD buy idea after trend line breakout. 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. The method that we are going to use is the multi-timeframe analysis in which we will be analyzing three timeframes that is the current trading timeframe and two timeframes higher. First lets start the analysis from the weekly timeframe.

Do These 3 Steps To Become Successful Trader

EURUSD W1(Weekly) Chart Analysis – Downtrend Line Breakout, Bullish Divergence, Parabolic Sar, Fibonacci Retracement

On the weekly chart the price which was moving lower has created a triple or special cycle and currently it looks like this cycle has completed itself. We may now look for possible retrace to happen towards the 38.2% – 50% fibonacci retracement levels of this cycle. We had a bullish divergence between the first low on 27th May 2018 and the second low on 29th September 2019 and then the price moved higher, we then had a breakout of the downtrend line. In addition to this the dots in the Parabolic Sar are below the price, we may consider these as evidences of bullish pressure. Now lets drop down to one timeframe lower and see if the daily chart supports this view.

Technical Analysis - EURUSD Buy Idea After Trend Line Breakout

 

EURUSD D1 (Daily) Chart Analysis – Bullish Trend Pattern

Looking at the daily chart we have a price action bullish trend pattern (in the form of three higher highs, higher lows structure) which supports as an evidence for the bullish view. Generally after the bullish trend pattern we may look for pullbacks to happen and currently it looks like a pullback is happening, once the pullback completes itself we may then start looking for buys with more bullish evidences (candle stick patterns, false breaks, trend line breakout etc…).

Technical Analysis - EURUSD Buy Idea After Trend Line Breakout

 

EURUSD H4 (4 Hours) Chart  Analysis – Fibonacci Expansion, Two Important Support Zones, Potential Bullish Divergence

On the H4 chart currently it looks like the pullback that we were looking for is happening and based on the fibonacci expansion levels of the first wave we have, there are two important technical support zones that has formed. Price has reached the first technical support zone at around 1.11333 and in addition to this we also have a potential bullish divergence that is forming at the moment, we may now look for bullish setups with more bullish evidences (candle stick patterns, false breaks, trend line breakout etc…) in order to join the bulls. Alternatively if the price moves lower then the next area to look for bullish setups with bullish evidences (candle stick patterns, false breaks, trend line breakout etc…) would be the second technical support zone at around 1.10888.

Technical Analysis - EURUSD Buy Idea After Trend Line Breakout

 

Technical Analysis & Forecast Summary

Lets recap and summarize the analysis we had so far:

EURUSD W1(Weekly) Chart Analysis:

  • Downtrend Line Breakout, Bullish Divergence, Parabolic Sar, Fibonacci Retracement

EURUSD D1 (Daily) Chart Analysis:

  • Bullish Trend Pattern

EURUSD H4 (4 Hours) Chart  Analysis:

  • Fibonacci Expansion, Two Important Support Zones, Potential Bullish Divergence

 

Like these analysis?

Join the Traders Academy Club and get access to our complete watch list and trade report. 

This is how the report looks like. A table with the hottest market opportunities, screenshot behind every pair and time frame (anything that is in blue inside the table is clickable and leads to a screenshot) + a summary in text format, kind of highlights. And of course Live Trading Room every single day.

 

Technical Analysis - EURUSD Buy Idea After Trend Line Breakout

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

Click To Join Our Community Telegram Group

2
Leave a Reply

avatar
2 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
KateChris Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Kate
Guest
Kate

It was so useful Vlad, thanks a lot

Chris
Guest
Chris

I am always a profound fan of yours, keep rocking