EUR/USD’s 4hr Pullback
EUR/USD has been trending higher since Valentine’s Day, this emerging uptrend is best viewed on the 4hr candle chart (below).
On this timeframe, we see three factors that indicate EUR/USD’s uptrend has potential to run higher:
1. Steepening Trendlines:
Analysis of EUR/USD's inflection points reveals a noticeable steepening of trendlines, signalling increased bullish momentum—a hallmark of a robust uptrend.
2. NFP Keltner Touch:
The latest surge in EUR/USD had enough momentum to touch the upper Keltner Channel, coinciding with the release of Friday's US non-farm payrolls (NFP) data. While the headline NFP exceeded expectations, disappointment in average hourly earnings and the unemployment rate weakened the USD, prompting a rally in EUR/USD.
3. Low Volatility Pullback:
Following the move into the upper Keltner Channel, a low volatility pullback occurred, settling around the 20-day exponential moving average (EMA)—a region coinciding with horizontal support.
EUR/USD 4hr Candle Chart
Past performance is not a reliable indicator of future results
Risk Management:
Stop Loss Placement:
Those looking to buy into EUR/USD’s pullback should consider incorporating the average true range (ATR) into their stop placement strategy. ATR dynamically adjusts for volatility. A stop that is 2 x ATR on the 4hr candle chart should provide enough room to account for short-term ‘noise’.
Calendar Check:
This week's economic calendar includes US inflation data today, European industrial production on Wednesday, and US retail sales on Thursday—events that may influence market dynamics.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.01% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
On this timeframe, we see three factors that indicate EUR/USD’s uptrend has potential to run higher:
1. Steepening Trendlines:
Analysis of EUR/USD's inflection points reveals a noticeable steepening of trendlines, signalling increased bullish momentum—a hallmark of a robust uptrend.
2. NFP Keltner Touch:
The latest surge in EUR/USD had enough momentum to touch the upper Keltner Channel, coinciding with the release of Friday's US non-farm payrolls (NFP) data. While the headline NFP exceeded expectations, disappointment in average hourly earnings and the unemployment rate weakened the USD, prompting a rally in EUR/USD.
3. Low Volatility Pullback:
Following the move into the upper Keltner Channel, a low volatility pullback occurred, settling around the 20-day exponential moving average (EMA)—a region coinciding with horizontal support.
EUR/USD 4hr Candle Chart
Past performance is not a reliable indicator of future results
Risk Management:
Stop Loss Placement:
Those looking to buy into EUR/USD’s pullback should consider incorporating the average true range (ATR) into their stop placement strategy. ATR dynamically adjusts for volatility. A stop that is 2 x ATR on the 4hr candle chart should provide enough room to account for short-term ‘noise’.
Calendar Check:
This week's economic calendar includes US inflation data today, European industrial production on Wednesday, and US retail sales on Thursday—events that may influence market dynamics.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.01% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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.