We will be looking to buy EURUSD at the retracement levels. After a dip down, we will be looking at buys form the support level.

EURUSD has been in a bearish trend, but tapped the major support level, which is indicative of the buying pressure. We need to see the market form HH and HL’s in order to confirm the bullish trend continuation. Right now, market is resting at the resistance level. We may either see a breakout, then enter the buy position at the retest, or we can wait for the market to form another retracement leg below the resistance to get in on the train.

There is no indication of any trendline setup. The only trendline we see is a descending one, which is still above the price action. Once it breaks, the confirmation is enhanced for the market to continue bullish.

The retracement level of a golden level of 75-78.6% has been tapped in confluence with the support level. With the solid confirmation, we can be have a higher probability for the market to continue up.

Both the EMA 50 and 200 are in a bearish death cross and are still above the prices. After the breakout of both the EMA’s, the market rarely retested the EMA and is due to another retest for a correction. 1.1775 is the resistance level which may overlap with the EMA 50 retest. This area will be our profit taking area.

The oscillators we use are the RSI and CCI. Both the oscillators bounced back from the over-sold region and are headed towards the neutralized levels. Right now, there is enough window for the market to move towards the neutral level.

EURUSD buys from retracement

Sep 21 2021

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