FX.co ★ berta.hill | EUR/USD

EURUSD H4 Trading Strategy Based on Pivot Point and Stochastic Momentum

On the H4 timeframe, the EURUSD pair is currently showing a price movement that is attempting to recover after previously being under bearish pressure. With the last price around 1.1733, it can be seen that the market is approaching the first resistance area at 1.1763. This structure provides an attractive opportunity for traders who use a combination approach of pivot points and momentum indicators like Stochastic. Technically, the daily pivot point is at the level of 1.1709. This level is key in determining the market bias. As long as the price is above the pivot point, the market tendency is bullish. Conversely, if the price drops and stays below that level, then bearish pressure is still dominant. Currently, the price is already above the pivot point, indicating the potential for further upward movement, although not yet fully strong. The nearest resistance is at 1.1763, which is the first target for upward movement. If the price manages to break above this level with sufficient momentum, then the opportunity to continue the rise towards the next resistance at 1.1795 to 1.1850 will become more open. However, if there is rejection in this area, a correction back to the pivot point at 1.1709 is very likely. From the indicator perspective, the Stochastic (5,3,3) is in the overbought area, above the 80 level. This indicates that although the price is rising, overbought conditions are starting to form. This situation is often followed by a short-term correction before the main trend continues. Therefore, traders need to be cautious about not entering a buy position at the peak without additional confirmation. The strategy that can be used in this condition is to wait for two main scenarios. The first scenario is to buy on breakout, when the price successfully breaks and closes above the 1.1763 resistance with strong volume and momentum. Entry can be made after confirmation of a bullish candle, with targets towards 1.1795 and 1.1850, and a stop loss below the breakout level. The second scenario is to buy on pullback, waiting for the price to fall back to the pivot point area at 1.1709 or the nearest support at 1.1677. If a bounce signal like a bullish engulfing or rejection candle appears, it could be an opportunity for a buy entry with lower risk. The target remains aimed at the resistance above. For more conservative traders, selling can also be considered if the price fails to break above 1.1763 and the Stochastic shows a downward crossing from the overbought area. The downside target is at the pivot point 1.1709 to support 1.1677. In conclusion, the current market condition is in a transition phase from bearish to bullish. The key levels are at 1.1763 and 1.1709. Discipline in waiting for confirmation and good risk management will be crucial factors in maximizing trading opportunities on the EURUSD H4 timeframe.