This is my analysis on the EUR/USD currency pair on which I am waiting for a development from last week. I am posting it now since we are close to the beginning of the plan and we might see it executed today or tomorrow.
Quick overview: The pair reached a strong both on Weekly and Daily time frames and was consolidating below it for the past few days, thus forming a range on the H4 time frame. This can be confirmed also by the . Before that we had an extensive uptrend starting from the around 1.0850. Due to the consolidation below the around 1.1250, I believe we might see a new trend forming, maybe even going all the way down to the start of the uptrend around 1.0850.
How to trade it:
There are two ways to trade this movement. I would enter with a single position as soon as the candle breaks the bottom of the range formation on the H4 chart. From there I will be monitoring the price movement and if I have a chance I will enter again on the H4 chart.
The other way to trade this is with small trades with intraday strategy. I have defined 4 Sell zones as you can see from the chart in which you can look for opportunities to Sell the pair on M30,M15 or even M5 - depends which time frame you prefer.
The yellow rectangles are areas where the pair might stop and consolidate for a while or even shift the trend. My main target will be reaching the bottom from where the uptrend started at around 1.0850 in the long run. Below you can find the Sell areas (keep in mind that they are not perfect, so if you have an earlier signal to close your positions, do not hesitate to do it):
Sell Area 1: 1.1155 to 1.1095
Sell Area 2: 1.1070 to 1.1015
Sell Area 3: 1.0985 to 1.0940
Sell Area 4: 1.0915 - 1.0850
I wish everyone good luck and happy trading.
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