EUR/USD Daily Analysis: We saw a hard bounce off of 1.3780 support yesterday, sending the pair up over 70 pips to challenge 1.3850 a few hours ago. After that bounce (off of the 50% retracement of the 1.3670-1.3910 rally), which made a new high over the previous week’s daily candles, the hourly trend is short-term bullish. The rally also broke the topside of our bullish flag pattern (blue channel lines on 4h chart), adding bullish weight to the move.
4h Chart
Long-term Trend Analysis Chart
Our Preferred Trades*: We are looking to get long under 1.3830 with bullish confirmation, targeting a rally to 1.39/1.3950. A break beneath 1.3780 will signify that bears are once again in control in the short-term.
Yesterday’s EUR/USD SwingPRO Signal Result: Price rallied right through our narrow selling corridor of 1.3810-3830, never kicking out a strong enough bearish signal for us to sell.
Today’s SwingPRO Signal: We are looking for reasons to get long, starting with a resistance break under 3830 with a TP of 80 and a SL of 50.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
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