Hello my friends! Today I will give you a review about EURUSD pair. I have 2 scenarios for this pair. The first is to look for buy signal, while the second is a plan to sell the pair.

Hello my friends! Today I will give you a review about EURUSD pair. I have 2 scenarios for this pair. Let’s see the first scenario.
 

First, let’s take a look at 4H chart :

EURUSD

 

The price is moving nicely above the 200EMA line which shows a really strong uptrend. There was bearish divergence before and then the price was declining from 1.138 level to around 1.112 level.


If we check this pair carefully, there is a hidden bullish divergence there and I think it’s the end of the downward movement after the bearish divergence. I was looking to buy this pair. The Stochastic is in the oversold area and it’s moving up, giving the signal to enter long position. Let’s take a look at a lower time frame to pinpoint the exact entry:

Bullish

First, there is a bullish divergence, giving the signal to go long too. The price has broken the trend line and it’s a good time to enter the trade. Stop loss should be placed a couple pips below the latest low and profit target should be placed around resistance area (look the first picture).

 

For the second scenario, the price could resume the downtrend movement. Let’s check the daily chart :

Bearish

Look at the latest 4 candlesticks. They performed a three inside down candlestick pattern which is a bearish reversal pattern. So if the the price moves up and reach the resistance level (the first scenario), we will have to look for a sell signal.

Hope this helps!
See you later!

RICO FY