Rebound to 1.00 before further losses

Multi Timeframe Analysis

Hint: DXY is almighty but EURUSD is oversold

Expect investor buying spree to push EURO up- momentarily.

Medium term Bullish Narrative:

1. Bearish institutional order block at the 1.00 level. Price gravitates to such market imbalances
2. Dense volume profile with POC at the 1.00 level- yet another price magnet.
3. Potential retrace near or deeper than the 78% fibonacci level at 0.99
4. Traders Dynamic Index signalling oversold
5. Bullish MACD, OBV, MFI divergences on the daily

Expected movements: EURUSD will maintain a bearish trajectory for the medium term.

Recommendation: cautious shorts as RSIs are below 30

Remember: life often disrespects charts so trade with caution

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Market order position upon the confluence of valid entry rules on the 4H or 1H chart.

-=ENTRY RULES=-

Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the master trend.

Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The RSI , MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe

For SHORT:
4H chart should confirm that the bullish retrace had turned bearish in the direction of master trend. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is below the 50 signal line

For LONG:
4H chart should confirm that the bearish retrace had turned bullish in the direction of the master trend. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is above the 50 signal line

Divergences:
The 4H, 8H and 12H chart can reveal hidden divergences on the RSI , MACD , Money Flow Index, CMFI, On Balance Volume and Stochastics. When one or more divergences manifest- be ready. Trend reversal is coming. My best practice is to wait for at least an RSI divergence on the 4H, then drop to M15 to see price shifting with a 50EMA aligned with the 4H divergence.

About me
I am not a financial advisor nor a signal provider. These are the opinions of a 20-year private trader in the legal profession as well as a businessman diversified in the tech and hospitality industries. My favored tools of the trade include wave analysis, price action on the 4H to Weekly timeframes and institutional order flow ( COT data).