EURUSD Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Weekly
Uptrend.
The price bounced just before the previous high and may be forming wave 5 of the uptrend.
There is a possibility of a double top forming at the monthly resistance line, leading to a reversal.
However, the price may also break through and continue moving higher.
Daily
Uptrend.
There still seems to be room for a further rise, making it a potential opportunity to aim for more upside.
4-Hour
Uptrend.
The price slightly broke above the daily resistance line with a wick, but was pushed back strongly, indicating resistance.
There is upward potential, but the reaction suggests strong selling pressure and profit-taking from buyers.
Economic data releases may have also influenced the price action.
1-Hour
Uptrend.
The previous high has become a support-resistance flip line, and the price has bounced off of it.
There is a chance of forming a double bottom and resuming the uptrend, or the price may drop back to the origin of the move.
Trade Strategies
Strategy①
Trend-following long in line with higher timeframes.
If the support-resistance flip line holds and a double bottom starts to form, drop to a lower timeframe and look to go long from the base.
Target the neckline of the double bottom. If momentum remains strong, aim to extend profits beyond that.
Strategy②
If the price drops to the origin of the 1-hour uptrend, look for a trend reversal on lower timeframes and consider a long entry.
However, if the price breaks below that level and heads toward the 4-hour support-resistance flip line, the 1-hour uptrend will likely be broken, and it’s best to wait and reassess.
