After a strong bearish run, EURUSD has halted at the major support level. The price at this level is 1.1580. The market may start its bullish trend after retesting this support once again. We are looking to go long form this support level.

The market has formed a descending trendline, which is still far away from the current market prices. Once the market breaks the trendline, we will observe more bullish pressure.

The 75-78.6% retracement level is in confluence with the support level. The price of the retracement level is 1.1580. If market tests this level, we will see a confluence with the support level.

Both the EMA 50 and 200 are in a bearish form, with a bearish death cross. Although the market has retested the EMA 50 plenty of times, EMA 200 is still awaiting the retest. Once we bounce off from the support, EMA 200 retest could be our profit targets.

Both the oscillators are in a bearish region. RSI at 48 and CCI at -62. With this current scenario on the oscillators, we need to wait for them to be in their over-sold region, or form a bullish divergence. The bullish divergence will shift the trend into a bullish one.

If market tests the support level as mentioned on the charts, there is a high probability for the EURUSD to change its course into a bullish trend. With that, we will be able to catch around 200 to 250 pips on a longer time span. If market breaks the support, then we will have to get out of the market and wait for another opportunity.

EURUSD buys from support

Oct 05 2021

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