EURUSD Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Monthly
An uptrend has formed recently, but from a broader perspective, the overall bias remains bearish.
The price has reached the last swing high of the downtrend.
Weekly
Uptrend.
The price did not return all the way to the previous high but rebounded just before it and is now rising again.
There was a pullback at the monthly resistance level, but the price is once again attempting to break higher.
Daily
The previous high has been broken, and the uptrend is continuing.
Currently in wave 5.
There is potential for the price to rise up to the monthly resistance.
4-Hour
Higher highs and higher lows indicate an uptrend.
Currently in a correction phase.
Looking to enter long after the correction ends.
1-Hour
It’s unclear where the last swing low is, but the bias has shifted to the downside for now.
Looking to consider a long entry after observing price action around a key horizontal level on the 1-hour chart or the previous high on the 4-hour chart.
Trade Strategies
Strategy①
A trend-following long on the 4-hour chart, countertrend on the 1-hour.
The 4-hour chart appears to have completed wave 3 and is now in a correction phase.
Looking to enter long targeting wave 5.
Key focus is on price action at the previous high on the 4-hour chart.
Strategy②
Trend-following short on the 1-hour chart.
Looking to short as part of the 4-hour correction if the price pulls back to the support/resistance flip line.
If the price drops directly from the current level, the setup will be skipped.
Postscript Trade Strategies
Strategy①
Due to strong downward momentum, wait for the price to pull back near the origin of the last high on the 4-hour chart before considering a long entry.
There is also a chance the price may start rising earlier, so watch for a trend reversal on lower timeframes.
Pay attention to the origin of the 1-hour uptrend as well.
