EURUSD: 1-Hour Set up
Moving Averages:
20-period EMA (green), 50-period EMA (orange), and 200-period EMA (red) show a clearer short, mid, and long-term trend direction.
The price is currently trading below the 200 EMA, which indicates that the overall trend is bearish.
The price has moved above the 20 EMA and is challenging the 50 EMA, suggesting a short-term bullish reversal or retracement.
RSI:
The RSI is at 65.20, showing that the asset is approaching overbought territory. This indicates caution for buying positions but could also signal momentum for further upside.
MACD:
The MACD is showing a potential bullish momentum as the MACD line has crossed above the signal line. This suggests a possible continuation of the current bullish momentum.
Resistance Zones:
1.1060: This is near the 200 EMA and could act as a strong resistance, especially considering that it aligns with previous price peaks.
1.1100–1.1120: The next key resistance area is visible, where the price previously stalled before making a sharp move down.
Support Levels:
1.1020: This support aligns with the recent bounce, where the price reacted positively. If the price drops below this level, it could signal a further downside.
1.1000: A psychological round number and previous consolidation area, adding significance to this support.
Buy Strategy (Pullback and Trend Continuation):
Entry:
Consider entering a buy trade if the price retraces towards 1.1020 (just above the recent support) and holds above the 20 EMA.
Confirmation of a bullish entry could come from the MACD crossover (bullish), or a bounce from the RSI if it stays above 50.
Stop Loss:
Place a stop loss slightly below 1.1000 (around 1.0990) in case the price breaks down.
Take Profit:
First target: 1.1060 (near the 200 EMA).
Second target: 1.1100–1.1120, if the price manages to break through the 200 EMA resistance.
Risk Management:
Since RSI is approaching overbought levels, enter cautiously and monitor the price reaction at the 1.1060 resistance zone. If the price breaks above the 200 EMA with strong momentum, hold on to the trade for a potential further move up.
Sell Strategy (Trend Reversal):
Entry:
Enter a short position if the price fails to break through 1.1060 or stalls at the 200 EMA. This would confirm that the bearish trend is resuming after a retracement.
A strong bearish candle at or near the 200 EMA can confirm the sell signal, especially if accompanied by a bearish crossover on the MACD or RSI turning lower from overbought levels.
Stop Loss:
Set a stop loss above 1.1100 (preferably around 1.1110) to cover any false breakout above the resistance level.
Take Profit:
First target: 1.1020 (short-term support).
Second target: 1.1000, and potentially further down if the bearish momentum strengthens.
Risk Management:
The sell strategy works well in a continuation of the overall bearish trend, but always look for confirmation signals like price rejection at the 200 EMA or bearish divergence on the RSI and MACD.
Buy Setup: Buy near 1.1020 with targets at 1.1060 and 1.1100, especially if price remains above the 20 and 50 EMAs.
Sell Setup: Look for a short near 1.1060 or below 1.1100 with a stop above, targeting 1.1020 and potentially 1.1000.
20-period EMA (green), 50-period EMA (orange), and 200-period EMA (red) show a clearer short, mid, and long-term trend direction.
The price is currently trading below the 200 EMA, which indicates that the overall trend is bearish.
The price has moved above the 20 EMA and is challenging the 50 EMA, suggesting a short-term bullish reversal or retracement.
RSI:
The RSI is at 65.20, showing that the asset is approaching overbought territory. This indicates caution for buying positions but could also signal momentum for further upside.
MACD:
The MACD is showing a potential bullish momentum as the MACD line has crossed above the signal line. This suggests a possible continuation of the current bullish momentum.
Resistance Zones:
1.1060: This is near the 200 EMA and could act as a strong resistance, especially considering that it aligns with previous price peaks.
1.1100–1.1120: The next key resistance area is visible, where the price previously stalled before making a sharp move down.
Support Levels:
1.1020: This support aligns with the recent bounce, where the price reacted positively. If the price drops below this level, it could signal a further downside.
1.1000: A psychological round number and previous consolidation area, adding significance to this support.
Buy Strategy (Pullback and Trend Continuation):
Entry:
Consider entering a buy trade if the price retraces towards 1.1020 (just above the recent support) and holds above the 20 EMA.
Confirmation of a bullish entry could come from the MACD crossover (bullish), or a bounce from the RSI if it stays above 50.
Stop Loss:
Place a stop loss slightly below 1.1000 (around 1.0990) in case the price breaks down.
Take Profit:
First target: 1.1060 (near the 200 EMA).
Second target: 1.1100–1.1120, if the price manages to break through the 200 EMA resistance.
Risk Management:
Since RSI is approaching overbought levels, enter cautiously and monitor the price reaction at the 1.1060 resistance zone. If the price breaks above the 200 EMA with strong momentum, hold on to the trade for a potential further move up.
Sell Strategy (Trend Reversal):
Entry:
Enter a short position if the price fails to break through 1.1060 or stalls at the 200 EMA. This would confirm that the bearish trend is resuming after a retracement.
A strong bearish candle at or near the 200 EMA can confirm the sell signal, especially if accompanied by a bearish crossover on the MACD or RSI turning lower from overbought levels.
Stop Loss:
Set a stop loss above 1.1100 (preferably around 1.1110) to cover any false breakout above the resistance level.
Take Profit:
First target: 1.1020 (short-term support).
Second target: 1.1000, and potentially further down if the bearish momentum strengthens.
Risk Management:
The sell strategy works well in a continuation of the overall bearish trend, but always look for confirmation signals like price rejection at the 200 EMA or bearish divergence on the RSI and MACD.
Buy Setup: Buy near 1.1020 with targets at 1.1060 and 1.1100, especially if price remains above the 20 and 50 EMAs.
Sell Setup: Look for a short near 1.1060 or below 1.1100 with a stop above, targeting 1.1020 and potentially 1.1000.
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