EURUSD watchout for the blue trendline above !#EURUSD #Weekly #Tommy
- Here is EURUSD weekly chart. Assuming that the impulsive uptrend wave cycle has started from the low at 0.82311 that was formed around 2001, here is my Elliott wave counts.
- I interpreted the corrective phase as WXY structure where wave X has tried to make a swing high, but has failed and thus the correction cycle is considered as extended.
- Make sure to pay attention on the blue long term downward trendline located above. It EURUSD has been resisted by this very trendline about three times. When it succeeds to break above, some bullish waves are to be expected.
- EURUSD has recently broke the orange sideway channel (which I am considering it as a contraction phase) above. It had broken the top of the channel at 2017~2018, but went back into it after forming a head and shoulder pattern.
- Therefore, for those traders who are waiting for the long position at the retest area around 1.15, make sure to set your stop loss tight since it can of course happen twice.
- The chart above is daily timeframe. In a shorter term, the green trendline has failed supporting and made lower highs and lows.
- The entries for long position that I find it as attractive are 1.14300~1.15000, 1.11200~1.11900, and 1.09700~1.10400
- One factor that I am putting some weights on is the weekly MACD. At relatively high level, death cross has emerged which can be signaled as bearish.
- At the same time, weekly RSI’s support at 53.75 is also being tested. If the RSI breaks this line below and the next weekly candle closes, I am more bearish on EURUSD for a while.
