EURUSD Trading Analysis

by: Colibri Trader

Hi all,

The trading analysis from last time worked well and it reached the first potential target- the support level at 1.1570. It then bounced back and formed first a daily rejection and then an inside bar.

This was the sign I was looking to exit my trade.

 

EURUSD Trading Analysis

 

What I am looking today is EURUSD again. As explained in the previous analysis, I was looking for either a breakout or a re-bounce. Well, the re-bounce is a fact already, so now I am looking for a potential long entry.

From a daily perspective, there is a bullish engulfing pattern that is formed of two candles. This is confirming the bullish stance.

If I proceed to buy EURUSD, I will be looking for a small correction back to 1.1615. Then, I will be also looking for a price action confirmation pattern. If such occurs, the next resistance (or price target) could be 1.1875.

I would be careful with this pair, since it might take some time to find direction. But it seems to me that price action is confirming my initial view and now is giving green light to the buyers.

Happy Trading,

Colibri Trader

p.s.

If you want to learn more about price action and candlesticks, you can read my previous article on the Bullish and Bearish Engulfing