EURUSD has been pricing within a descending wedge, falling into the weekly and monthly support. We will technically evaluate how its operating on a lower time of H4.

- Market structure: In a choppy market, as it is with EURUSD right now, cant really depict a market structure. That being said, as mentioned early, we have a support on weekly and monthly where EURUSD tapped. After tapping, the rejection was formed and prices started moving up. The market upholds the strong support level of 1.1750 so far. From this support, we have a long position setup.

- Trendline: EURUSD has been operating within the descending wedge. The support trendline was tested 3 times, whereas the resistance trendline was tested 2 times. It has more potential towards upwards breaking the trendline as compared to downward. Reason being, the descending trendline has partially broken out for buys. After breaking out, market also tested the trendline, marking another bullish confirmation.

- Retracement: After the trendline breakout buys, we see prices bounce back to the support, which is also in confluence with the retracement levels of 75-78.6%. This is a golden area to go long on EURUSD.

- EMA's: Right now, EMA 50 is on the verge of being broken out. The dilemma with EMA is, whenever an EMA is dysfunctional in a way of breakouts on either side, this signs a potential power move towards a direction. In this case, we have a bullish bias. Secondly, EMA 200 is still far up. We anticipate this EMA 200 being retest towards upwards.

- RSI/CCI: RSI has a bullish trendline breakout at the level of 48. Although, market has factored in the bullish divergence on RSI and moved up, the farther is still pending. CCI also had a bullish divergence, which has been priced in. EURUSD may test the ascending trendline to continue in the bullish region.

EURUSD has a good probability for a bullish leg. We have good confirmations on the higher timeframes which induce a power move on the pair.

Recalling EURUSD on H4

Jul 22 2021

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