Analysis
Bias: Bullish with caution
Market Structure:
The EUR/USD pair is currently trading at 1.0821, showing bullish price action in the most recent days after a period of decline. Looking at the 4-hour chart, we see a strong upward move in early March followed by a correction and consolidation phase. The price is now attempting to form higher lows after reaching a recent bottom at around 1.0740.
On the 1-hour chart, the price has formed a series of higher lows over the past 2 days, suggesting some bullish momentum building. However, the overall structure shows range-bound movement between approximately 1.0740 and 1.0850.
The 15-minute chart confirms the short-term bullish bias with recent candles making higher highs and higher lows.
Key Levels:
Resistance: 1.0850 (recent swing high)
Support: 1.0740 (recent swing low)
Immediate resistance: 1.0830
Trade Setup
Entry: Limit order at 1.0800 (pullback to retest broken minor resistance)
Stop Loss: 1.0765 (35 pips below entry, below recent structure low)
Take Profit (TP): 1.0850 (previous resistance level)
Extended Take Profit (TP2): 1.0900 (psychological level)
Order Type: Limit order
Rationale:
The market is showing signs of bullish momentum, but we want to wait for a pullback to a better entry price rather than chasing the current move. The 1.0800 level has acted as both support and resistance in recent price action. A pullback to this area would provide a better risk-to-reward ratio.
If no pullback occurs and price continues upward, consider an alternative entry on a clean break and retest of the 1.0850 resistance level, with stop loss 35 pips below that entry point.
Alternative Scenario:
If price breaks below 1.0740 convincingly, the bullish bias would be invalidated, and a bearish setup could emerge. In this case, wait for a potential short opportunity after a retest of the broken level.
Trade active
If price will move to 1:1 RR I will move SL to BE
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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.