April 9, 2020 EUR USD ANALYSIS

EUR USD FOREX MARKET ANALYSIS

The monthly trend line (Blue) is being retested on the daily chart. There are two possible market scenarios to expect here.

  • Price Gets rejected around the monthly trend line and sell downwards
  • The market can get into a channel formation, and delay for days.
  • Price breaks through the monthly trend line, and continue buying upwards towards 1.12060

Patiently wait for the price action to enter trades in the direction of the engulfing bar.

March 12, 2020 EUR USD ANALYSIS

While there are many short term opportunities in the forex market, they are often of low quality and leads to several losses. Several decades of experience has taught us to be patient and cautios with the forex market in order to derive the best possible returns from the market. We have been following EUR USD pairs for over a month now, and the pairs have never dissapointed in its response to sentiments, but whats even more interesting is the way and manner the EUR USD currency pair, forms its candles, and its respects for horizontal and diagonal supports etc. lets take a look at what the data is telling us today, while preparing for another trade with this pair.

EUR USD DAILY CHART

On the daily chart, you see the daily chart attempting to break through to reach the diagonal support levels on the weekly and monthly charts as shown below. While there is a reversal on the daily chart for 2 days continously, we are seeing the sell trend, reaching a horizontal support, at which point, an engulfing bar would give a nice opportunity to buy.

EUR USD Weekly chart

The market looks clearly from the weekly and monthly charts, from here, you can see the diagonal support levels drawn months ago, being respective at the support levels. At the moment, market is trying to retest the diagonal resistance levels, the small retracement on the daily charts, are therefore not enough reason to sell into this market on long term trades.

EUR USD Monthly chart

Generally, market has been on a down trend for the EUR USD pair for years now. The Euro has been losing against the dollar. this is shown by the diagonal resistance levels indicatedby the top blue line.

In Forex trading, the trend is your friend, so while in the medium term trades we would look for buy opportunities, especially buy engulfing bars on the daily chart, we can not rule out the possibility of the market breaking through the diagonal support, in which case we are in for a run to at least 1.05303.

Trade cautiously.

Feb 11, 2020 EUR USD ANALYSIS

From the chart below, we can see the EURUSD pair breaking the midterm time frame at price 1.10200 (indicated by the faint blue line). Breaking the diagonal trend line at that price point, was an opportunity to sell into the long term time frame (deep blue line).

FEB 11, 2020 CHART

From the earlier analysis, we now know that price tested the long term monthly trend line (deep blue line). Two things are likely to happen at this price point; Market would reject the price and buyers would take over the market or price would break through the monthly trend line giving room for more sell opportunities. Either way, a nice engulfing bar on the daily bar would tell us, which direction to trade next.!

Feb 3, 2020
In the long term view of EUR USD, we see the EUR/USD forming the last known high in April 2008 at a market price of 1.60170 in a downtrend pattern, showing a lower high at price 1.49171 in May 2011.

EUR/USD Long term View

February 2017, the EURUSD pair touched the lowest bottom at price 1.03253, while respecting the long term horizontal support, the market again formed a double bottom in October 2019, giving us the opportunity to draw two distinct diagonal trendlines as shown in the picture above.

The EUR USD pair would continue trading between these two diagonal trend lines, and a break out in either direction would be a good entry point.

EUR/USD MID-TERM MARKET VIEW

EUR USD MID-TERM Market View

The EUR/USD pair has created the inner trend line (red line), and outer trend line (faint blue line). (the outer blue line is from our long term monthly trend line).

Market defied the inner trend line and took a sell position towards our long term view, but double-bottomed forming the outer trend line, which went back to test the inner trend line at a critical horizontal support level. A rejection around any of the trend lines would be a good entry position.

EUR/USD SHORT TERM MARKET VIEW

EUR USD SHOT TERM MARKET VIEW

Here, we saw price going to test the inner trend line and getting rejected, to retest a key horizontal support level on the lower time frames. It is safe to say, the EURUSD pair has been in a general downtrend, and we expect more successful sell trades, entry based entirely on the anatomy of the candlestick.

This Post Has 3 Comments

  1. Seth

    Nice analysis

  2. Nancy

    Thank You very much, I benefitted immensely from taking some clues from here, you should write more often for some of us to benefit as well.

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