Good evening Traders and TFX Members!
I noticed some interesting price action going on with one of the messiest pair for the past few weeks – EURUSD
So by looking at the daily timeframe, we can see that we failed to stay above KEY monthly level 1.1450 and price dropped back to the liquidity zone. We have KEY trendline in-play now which IF broken = potential big downside momentum. Overall I’m staying with bulls with EURUSD and I’m expecting euro moving way higher that it is right now.
Key points to follow:
Potential spike to the trendline before moving higher.
Consolidation between 1.1450 and liquidity zone.
For more conservative trading, I would suggest to wait for 1.1450 to be broken before looking for long positions.
More aggressive way of looking at it would be to wait for a proper bullish signal either from current liquidity zone or wait for a potential spike to the trendline IF liquidity zone fails to maintain.
I will update you on EURO more when we get a clearer picture of what’s going on. But from what I can see, something big is coming for euro.
Mat at Technical FX