EUR to push higher

Let's start with the daily TF:
We've been in a downward channel for a while now and price seem to try and break out of it to the upside now.
Adding to that we also have some equal highs above that haven't been touched for a while now and you can expect that liquidity to be grabbed.
Note how that level correspond exactly to the weekly R1 pivot point as well. You can expect some resistance once we reach that level.

4h:

Here we can see the price delivery has been very efficient on the way up, leaving but one small imbalance
We have a clear bullish hidden divergence on RSI as well and equal highs sitting just above the previous swing high.
We're about to enter a previous support/resistance zone which coincide perfectly with the imbalance left yesterday during the push up which looks like the perfect long setup entry to play the continuation long. (which correspond to the 50% retracement from the previous swing low)

5min for entry:

Following the HTF analysis and looking at the 5min for entry, we can see that yesterday's R1 pivot correspond to the 79% retracement from the last low before the big push up that didn't give any proper pullback since. It's also at the S/R seen on HTF
Entry at that level would be ideal with a SL below S1 pivot and targeting at least the low hanging fruit at the equal highs for a first TP.

As always make sure you only trade what you CAN lose and use proper stop loss to avoid any big losses. Nothing is never certain, it's just a game of stacking probability in your favor.

Trade closed: target reached

Sorry for the late update but I'm traveling right now.
Last night when market opened I saw we had the daily R2 at 1.05268, just a bit below the current TP target.
And since I was not gonna be able to trade it I moved TP to that level to be on the safe side.
TP was hit overnight and reversed.

I still think the original TP is valid though and while I can't place a trade right now, I would re enter a long with the original TP if price comes back down to weekly pivot at 1.04544

SL can be set around 1.04377 to give plenty of legroom for the trade, still over 1:4 RR.
Also note that on the 1H it would probably coincide with a third touch on the RSI hidden bullish divergence to support the idea of a long entry.

I'll be back next week with more updates and ideas, feel free to follow!

Nordic_Wings

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Nordic_Wings