Weekly Analysis – EUR (by Harry She)
EURUSD H4 Chart
If you read last week’s analysis (Click here), EURUSD had indeed moved up as expected to complete the H4 Gartley. The pair reacted to the PRZ and stayed below the zone, indicating to us that a potential bearish could be coming up. Now the question is, “How should we enter the trade?”
EURUSD H1 Chart - A Bearish Scenario
Looking at the H1 chart, price is currently in a downward correction phase and we are still on a valid uptrend. Before taking the short, we want to see that price must break the uptrend Support trendline with strong impulsive move to the downside and close below the lower second green support zone, then entering a short preferably on the retracement.
A target for the short trade will be in the grey zone and a stretched target can be around the 1.0850 levels.
BUT…… what if the EURUSD continues to rally?
EURUSD H1 Chart – An alternative scenario
In order to enter long price must break and close above the resistance zone in Red and traders can enter long on the retracement back to the Red zone. An immediate target can be at 1.1500 and a stretched target at 1.1700.
Watch this pair together with us and we will update again when market gives us a clearer indication.
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