Over the past few weeks, the EUR/USD currency pair has shifted its direction and gained around 300 pips in an upward movement. This rally led to the formation of a Double Top pattern slightly above the 1.05 level. As a result, the price is currently experiencing a pullback. We anticipate that this decline could extend further downward, with the potential to test the 1.04 region. This level coincides with the key 38% Fibonacci retracement, a historically strong support zone that has influenced price action in previous instances.
Given the prevailing bullish momentum, we are inclined to enter a long trade once the price reaches this support area. Our bias is reinforced by the presence of a Golden Cross, a widely recognized technical indicator that signals a buying opportunity. However, to maximize our risk-to-reward ratio, we prefer to wait for the price to retrace toward the 38% Fibonacci level before executing a buy order. Once the trade is triggered, our target will be positioned above the 1.05 resistance zone, aiming to capture the next bullish wave. This approach ensures a strategic entry while leveraging strong technical signals to optimize trade performance.
Given the prevailing bullish momentum, we are inclined to enter a long trade once the price reaches this support area. Our bias is reinforced by the presence of a Golden Cross, a widely recognized technical indicator that signals a buying opportunity. However, to maximize our risk-to-reward ratio, we prefer to wait for the price to retrace toward the 38% Fibonacci level before executing a buy order. Once the trade is triggered, our target will be positioned above the 1.05 resistance zone, aiming to capture the next bullish wave. This approach ensures a strategic entry while leveraging strong technical signals to optimize trade performance.
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.