Bullish hidden divergence is emerging from EUR/USD, and there is a possibility that the price will bounce from the trend line.

Good evening traders! Today I want to give you my trading idea. I am looking at my favorite pair, EURUSD. Let’s take a look:

eurusd

The picture above is the EURUSD pair on 4H chart. The trend is a clear uptrend. There is bullish hidden divergence emerging, as you can see the RSI is moving down lower than the latest swing point but at the same time the price is moving down but making a higher low. This could be a good timing to go long. Let’s check the lower time frame on hourly chart:

eurusd

On hourly chart, we can see there is bullish hidden divergence emerging too, the price right now is at 1.1313 level and I am looking for it to go down a bit more to touch the trend line, around 1.1280 level.

The price has broken the first trend line and it is sitting near the 23.6 fibo level. The price could bounce at this level but I am looking for a stronger signal which is I believe it should be around 38.2 fibo level.

So the best scenario would be like this: wait for the price to touch the second trend line around 1.1280 level (38.2 fibo level) then go to a lower time frame, 15M chart or 5M chart, and then look for any bullish divergence. If there is  bullish divergence, then we can enter the trade. Put the stop loss minimum 20 pips below the trend line, and the profit target near the latest high.

Note: make sure the hidden bullish divergence still showing. If the price breaks the trend line or there is no bullish divergence on lower time frames, no trade should be entered.

Let’s just sit down and relax, and see what will happen.

Hopefully this help, see you next time!

RICO FY