To break down what's happening on the chart:
- The red line represents the long term that started in 2008. In October, fibre pulled back after breaking the trend and bounced strongly off it, signaling a new long-term bullishness.
- The orange line represents a medium term trend since 2016. After breaking the long term trend, it was used as resistance before being broken after price bounced in October.
- The blue lines represent trends within the last year, which shows a prevailing uptrend.
- Lastly, the white line represents a downtrend from the end of last year that was recently broken and used as support.
So now we know EURUSD is bouncing off an area of support to continue it's rising trend. Where can we enter?
I think the buy zone between 1.205-1.209 will be the last chance to get in at that kind of price.
Take profit will be at the next resistance at around 1.25
Stop loss will be a decent way past the last low around 1.20. I would be inclined to put it around 1.1975.
Enter between 1.205-1.209
TP: around 1.25
Let me know what you think and give me a follow for more.
P.s. this isn't financial advice, please do your own due diligence.