EURUSD started to move up without testing our previous buy setup. Now that it has formed HH and HL on H4, it is resting at the support level at 1.1638. This level might be fakeout with a wick towards a more strong level of retracement at 1.1600.

EURUSD has an ascending trendline, which is still below the current market prices. We anticipate a retest of this trendline, acting as a support channel, to push the market upwards. If for instance, this trendline is broken out for sells, we will have to reconsider our trading plan for the bearish view.

The golden area of retracement of 75-78.6% is below the support level. This area can be acted as a wick or liquidity grab area. This is where we will have our longs. It should be noted, unless market does not close below the support on H4, we are still bullish on EURUSD.

EMA 200 has been retested at the resistance level, being rejected by the market. The EMA 50 is going to be retested at the retracement level, hence, making it a confluence level with the retracement. We will have three confirmations at our buy position.

RSI and CCI, both are in a bullish region. RSI is at 55. Until it closes below the 50 level, we are still in an uptrend. What we anticipate is that the drop on eurusd towards our buy area, the oscillators would turn into an over-sold region. Hence, providing another factor as an addition for the buy position.

EURUSD is bullish on H4 but bearish on higher time frames. We are just monetizing the forming trend, if formed, which will give us a good reward. If market closes below the golden area of retracement on H4, we will be out of the market consuming smaller loss compared to our trade plan.

EURUSD wick buys from 1.1600

Oct 21 2021

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