EURUSD analysis
EURUSD breaks the key resistance zone and extends the rally to new highs. What happens next?
daily chart,
We see that EURUSD crossed the key trend line and the red 21 moving average, extending the rally to the 1.09 range. This is where, as expected, we saw sellers with defined risk higher than position resistance for a dip to the lows. On the other hand, buyers want to see the price higher to increase bullish bets to the 1.10 range.
4 hour chart,
We can see the break of the key resistance area around the 1.08 area more clearly. The price pulled back at one point to retest the resistance, turning the resistance level into a support plateau and extending the rally to the 1.09 range. From a risk management perspective, buyers will now have a much better risk of setting up trades around the uptrend line, where they will also have the red 21 moving average to cross. On the other hand, sellers want to see if the price breaks below the trendline to invalidate the uptrend and increase bearish bets to the lows.
1 hour chart,
We can see that the MACD indicator has given us signs of a price reversal, which is generally a sign of weakening momentum, often followed by a pullback or trend reversal.
EURUSD breaks the key resistance zone and extends the rally to new highs. What happens next?
daily chart,
We see that EURUSD crossed the key trend line and the red 21 moving average, extending the rally to the 1.09 range. This is where, as expected, we saw sellers with defined risk higher than position resistance for a dip to the lows. On the other hand, buyers want to see the price higher to increase bullish bets to the 1.10 range.
4 hour chart,
We can see the break of the key resistance area around the 1.08 area more clearly. The price pulled back at one point to retest the resistance, turning the resistance level into a support plateau and extending the rally to the 1.09 range. From a risk management perspective, buyers will now have a much better risk of setting up trades around the uptrend line, where they will also have the red 21 moving average to cross. On the other hand, sellers want to see if the price breaks below the trendline to invalidate the uptrend and increase bearish bets to the lows.
1 hour chart,
We can see that the MACD indicator has given us signs of a price reversal, which is generally a sign of weakening momentum, often followed by a pullback or trend reversal.