This is a technical analysis chart of the EUR/USD (Euro/US Dollar) currency pair on the 1-hour timeframe, showing a potential buy (long) trade setup. Here's a breakdown of the elements and what they mean:
🔍 Chart Components Explained
✅ 1. Support and Resistance Zones
Resistance Zone (red box at the top): Price previously struggled to go higher here, indicating selling pressure.
Support Zone (horizontal line at 1.1475 area): Price bounced here multiple times, showing buying interest.
Very Strong Support Zone (green area below): Indicates a strong base; if price drops this low, it's likely to bounce significantly.
📈 2. Trendline
A black ascending line connects higher lows, confirming an uptrend that has recently been broken.
The break suggests the price lost some bullish momentum.
🔄 3. Entry and Target
The blue arrow marks a potential buy entry at support.
The Target box shows the expected take-profit area.
Price is expected to bounce from the current support back toward the EMA and previous structure.
📉 4. Indicators
Exponential Moving Averages (EMA 20/50/100/200):
These show average prices over different time periods.
Price has dropped below the shorter-term EMAs (bearish), but it's testing support now (could bounce).
Supertrend (red and green bands):
Currently showing a bearish trend (red), but could flip bullish if price reverses.
🧠 Trading Idea
Buy Zone: Around 1.1475–1.1480 (current support).
Target: Back up to 1.1530–1.1550 area.
Reasoning:
Price bounced from support multiple times (blue arrows).
Strong support zone is holding.
Risk-reward ratio looks favorable.
Caution: If price breaks below the green support zone, the bullish setup fails.
📝 Summary
This chart suggests a long (buy) trade setup on EUR/USD based on a key support level holding, expecting a bounce back to the previous structure. It's a technical setup ideal for short-term traders using price action, trendlines, and support/resistance principles.
Let me know if you want me to help you define entry, stop loss, and target levels exactly.
🔍 Chart Components Explained
✅ 1. Support and Resistance Zones
Resistance Zone (red box at the top): Price previously struggled to go higher here, indicating selling pressure.
Support Zone (horizontal line at 1.1475 area): Price bounced here multiple times, showing buying interest.
Very Strong Support Zone (green area below): Indicates a strong base; if price drops this low, it's likely to bounce significantly.
📈 2. Trendline
A black ascending line connects higher lows, confirming an uptrend that has recently been broken.
The break suggests the price lost some bullish momentum.
🔄 3. Entry and Target
The blue arrow marks a potential buy entry at support.
The Target box shows the expected take-profit area.
Price is expected to bounce from the current support back toward the EMA and previous structure.
📉 4. Indicators
Exponential Moving Averages (EMA 20/50/100/200):
These show average prices over different time periods.
Price has dropped below the shorter-term EMAs (bearish), but it's testing support now (could bounce).
Supertrend (red and green bands):
Currently showing a bearish trend (red), but could flip bullish if price reverses.
🧠 Trading Idea
Buy Zone: Around 1.1475–1.1480 (current support).
Target: Back up to 1.1530–1.1550 area.
Reasoning:
Price bounced from support multiple times (blue arrows).
Strong support zone is holding.
Risk-reward ratio looks favorable.
Caution: If price breaks below the green support zone, the bullish setup fails.
📝 Summary
This chart suggests a long (buy) trade setup on EUR/USD based on a key support level holding, expecting a bounce back to the previous structure. It's a technical setup ideal for short-term traders using price action, trendlines, and support/resistance principles.
Let me know if you want me to help you define entry, stop loss, and target levels exactly.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.