FX.co ★ Farhan Ali Shakir | EUR/USD

I haven’t engaged in EUR/USD trading, as I didn’t find it intriguing. I’m open to considering selling options if distinct bearish candlestick patterns emerge from nearby resistance levels. Analyzing yesterday’s events, it’s clear that sellers faced a setback amidst the news backdrop. A robust bullish candle formed, even surpassing the previous day’s high with its upper shadow. I’m refraining from making hasty conclusions and maintaining a southward outlook. I believe the downward movement could originate from the current levels or the closest resistance level, marked at 1.06396. As I’ve emphasized before, I’ll be monitoring the support level positioned at 1.04482. In proximity to this level, two scenarios may unfold. The primary scenario involves price consolidation beneath this level, followed by a further southward trajectory. If this scenario materializes, I’ll expect the price descending towards the support level at 1.02902. Around this support level, I’ll be on the lookout for a trading setup, aiding in determining the subsequent trading direction. Naturally, it’s plausible that the price might continue its southward push towards the support level at 1.00937. The course of action here will depend on the developing news backdrop as the price progresses. An alternate scenario upon nearing the support level of 1.04482 envisions a reversal candle forming, signaling a resumption of upward price movement as part of a correction. Should this scenario play out, I’ll expect the price returning to either the resistance level at 1.06396 or the resistance level at 1.07679. Near these resistance levels, I’ll continue to scrutinize for bearish signals, anticipating a renewed downward trajectory.

In summary, today presents nothing captivating for me. However, I acknowledge the possibility of a resumption of the southern movement either from the current levels or the nearest resistance level. In such a case, I’ll have my sights set on the support level of 1.04482. Taking a similar perspective on the H4 timeframe based on my assessments, we placed a bullish order. This entailed an upward breach of the daily channel’s trend line, followed by consolidation above it. The upcoming days will reveal whether a second candle solidifies above the line, further affirming this signal. We observed a bullish reversal pattern as a bullish engulfing candlestick. This bolsters the signal, especially when coupled with the technique of an upward breakout from the trend channel. Hence, the bullish prerequisites are in place; all that’s left is to observe the trend itself, surging towards the most recent highs. Of course, this is my viewpoint.