Hello traders! Today I will give you a quick review of my favorite pair, EURUSD. I have two trading scenarios for this pair. Check it out.

Hello traders! Today I will give you a quick review of my favorite pair, EURUSD. I have two trading scenarios for this pair. Check it out.

Let’s take a look at the EURUSD 4H chart :

 

EURUSD

 

The price has been declining for the past few weeks and it’s best to stay along with the trend.

Based on both indicators and the price action, we should look to sell on the rally. I have drawn the trend line; first, we need to wait for the price to touch the trend line or at least move near the trend line. We should look to sell this pair around 1.096-1.098 levels. Second, we need to wait for the MACD histogram to move passed the 0 line and close above the 0 line, then we need to wait for the Stochastic to move down and then crossover.

Why do we have to wait for these confirmations? Because we are looking for the hidden bearish divergence to perform. If all these confirmations are performed, then we can enter the trade. Stop loss should be placed above the trend line (around 1.100-1.103 level) and profit target should be placed near the support (1.082 level).

For extra validation, we should look for normal bearish divergence on hourly chart or look of any reversal candlestick pattern; this could strengthen our analysis.

The other scenario is that the price may break the trend line and move higher up to 1.12 level.

Make sure you wait for the confirmations before you jump into the trade.

Happy trading!
See you later!

RICO FY