Good day!
As promised the day before, today we will consider the lower timeframes, namely H4 and H1, in order to find the points for opening positions.
To begin with, a speech was made yesterday by the new President of the ECB, Ms. Christine Lagarde. However, market participants did not hear anything important or interesting from a very influential world-famous financial politician. And therefore, do not waste time, it is better to immediately go to the charts and to search for points to enter the market.
H4
As expected in yesterday's review of EUR/USD, the situation is ambiguous, which implies this week's movement in both directions. Since we started with a decline, we will focus on potential purchases. Moreover, in my personal opinion, the upward scenario remains the main one at the moment.
We see that the euro/dollar pair is moving in an upward channel with the parameters of 1.0879 – 1.1080 (support line) and 1.1179 (resistance line). The pair just pushed off from the support line of this channel, and as a result, there was a reversal model of the "Hammer" candlestick analysis with a bullish body. I believe that this is a confirmation signal for the likely growth and opening of purchases.
Those who agree with this assumption, you can set: buy limit of 1.129 (sl 1.1070 / tp 1.1202) or buy on the market. It is worth noting that in this positioning, the stop loss is a bit large, but it is better to set it below the green support line of 1.1073.
At the same time, if the lower boundary of the channel is broken and the pair consolidates below it, it is worth considering sales already on the rollback to the broken support line. A confirmation will again be the candlestick pattern, only in this case a bearish one.
For sales, we pay attention to the price behavior after rising to the resistance of 1.1180, 1.1200, 1.1230, and 1.1250. In this case, we also look at the candlestick patterns.
If we assume a false breakdown of the support line of the upward channel, which cannot be ruled out, we pay attention to the 200 exponential moving average (orange), which is located directly above the support line of 1.1079 and is likely to strengthen it significantly.
For those who want to play it safe and buy at a lower price, I propose to set: buy limit of 1.1083 (sl 1.1033 / tp 1.1173).
H1
The hourly chart also shows that the pair strongly pushed off from the lower border of the channel and turned on the rise. However, the euro/dollar pair at the time of writing is trading under the moving averages used (89 EMA and 50 MA) but confidently breaks through the 200 orange exponents. As an option, you should wait for the breakdown of 50 MA (1.1151), and if three consecutive hourly candles close above this moving average, plan to open long positions on the rollback to 1.1150.
In the current situation, the main issue is the ability of euro-bulls to continue to rise, go through the previously identified resistance and close today's session above the important and strong level of 1.1200.
By the way, for those who have a bearish view on EUR/USD, you can put a pending order for sale at this significant level for market participants: sell limit of 1.1200 (sl 1.1250/ tp 1.1115).
So far, these are all trading recommendations for the EUR/USD currency pair. In conclusion, I would like to draw attention to the fact that these ideas are the personal opinion of the author. And therefore, think for yourself, decide for yourself.
Successful and profitable trading!
