Richard is a full time trader with 12 years experience that includes working as an equities day trader at a trading floor in Cape Town.
Good day traders! EUR/USD is approaching a strong support zone that lies between 1.0730 – 1.0840 as well as a 0.786% Fib retracement level.
The overlapping price structure, since the lower high back in September 2018, has been bouncing around within two separate channels with the same slope.
My support zone encapsulates the two lower channel lines, a lower trendline and the 0.786% Fib retracement level.
If we can get a weekly bullish candlestick to close, which is similar to the ones I marked with the black arrows, then the EUR/USD stands a good chance to revert back to my center channel lines or even go higher.
I will be on the lookout for a bullish candle to close on my weekly chart, but that might only happen at the end of next week before I will be able to formulate and entry plan and set targets.
Updates to follow.
Bias: Bullish after reversal candle confirmation
Potential Resistance Zone: 1.0730 – 1.0840
Potential targets: Center channel line with additional targets to follow later.
Until next time, have a great weekend!