EURUSD - From Here to There

It's looking more and more like EURUSD is on its way to revisting the weekly high at 1.14950.

And USD is on its way to filling the gap between 95.85 - 95.48.

Will we finally get a much needed retracement or will the Euro continue to stomp on USD?

I don't know. But it surely looks like the Euro is unstoppable! It's been going through those psychological levels like a freight train!

EURUSD is ranging on the Daily. It could potentially go down another 50 pips or more. If it breaks down hard (out of the range), it's possible it could go as low as 1.1188.

I don't think EURUD will go either way for a substantial move. Simply because all the smart money is lined up about 50/50 long/short EURUSD positions.
With all respect for everyone, that is more telling than any chart pattern or indicator, because the largest pair doesn't move substantially without a lot of power behind it.

Can anyone guess what this pattern is? Don't be fooled by USD!


It helps to zoom out on larger time frames.

If you want to win, then you must be patient and wait for the Daily to show you the way. Retail is usually wrong. Retail has a tendency to go against the trend, because Retail is always trying to pick tops and bottoms before receiving a clear signal that is in harmony with the Daily. The majority is usually wrong. So if you go with the majority, then where will that get you? I have learned the hard way to avoid trading against a strong trend. More often than not, counter trend trading has proven to be a losing strategy.

Best of luck here!

More euro threads will be handy. More sources the better!

Thanks.

News is noise. Tread carefully!

This is an anomaly. At some point it will be corrected! When that happens, in which direction do you think EURUSD will be moving?

EURUSD 8 Hour Chart
Anything between 20308 and 19920 could be considered a potential buying opportunity if price action confirms a reversal signal, such as an engulfing candle, for example. Caution needs to be taken as this market is fragile.

Note: Price could go down to the demand zone between 19650 and 19519 before going up.



*This is not financial advice. It is for educational purposes.

USD 8 Hour Chart
Despite USD being overbought, it's still bullish and climbing higher and higher.



EURUSD 3 Day Chart
Unless things change, EURUSD will likely head lower to the demand zone between 18571 - 18010.

Note: Bears are losing momentum. This can be seen using the RSI (period 4)



*This is not financial advice but for educational purposes only.

Patiently waiting for a signal to go long.

Note: Price could fall below the previous monthly high. Should that happen, I will then wait to see if it continues to respect the trend. Otherwise, I am preparing to go long at an appropriate signal from the 4HR chart, preferably somewhere near the previous Monthly High.

Just as expected, a pullback has occurred. Weakness is starting to show near the 78.6 Fib (likely turning point), and also at the Daily 8 EMA (orange line). I will be looking for a bullish candle to go long. My plan is to ride it back up to 1.21702, as that is a supply area. It could go higher, perhaps as high as 1.22341. I will take it one day at a time.

If you are trading USD pairs, then do not ignore the U.S. Dollar Currency Index. It is a valuable tool for trading.

Well, that's all folks. Good luck!

Selling pressure has suddenly picked up significantly! If the Daily candle closes strong bearish, then I think we could see a correction coming, which means we could see a much deeper retracement on EURUSD. It won't be of any surprise, as prices can't just keep climbing higher and higher forever. There has to be a turning point. Time will tell.

Due to the familiar candle pattern I see on the Daily, I have changed my plan. I will be looking to go short next week, as I believe we are going to see further bearish activity. If I see any indication that this is not so, then I will go long at an opportune time.

EURUSD Daily

Attached Image (click to enlarge)