EURUSD had formed a range on all time frames for the period of December and January. To take into perspective, the market broke out from the range and is now reaching towards the support level. We will be looking at the demand/support level to go long on eurusd. This retracement leg towards the support should also form a HIGHER LOW. The support price we are looking at to go long is at price of 1.1335.

The descending trendline has been broken out earlier for buys. At the support level, the trendline will be retested, hence confirming a confluence of two factors.

The 75-78.6% retracement level is merely above the support level at the price of 1.1355. Market may bounce up from here. But, we need to wait for the market to tap the support in order to fill the orders and then continue up.

Both the EMA’s have been in a bullish momentum. The EMA’s have a bullish death cross and EMA 200 will be retested at the support level. This EMA 200 retest will give us an additional confluence of the technical factors.

Both the oscillators are in a bearish region. Looking at the current momentum of the oscillators, it seems that the market will create a bullish divergence at the over-sold area, once the prices reach at the support level. This divergence will give us an added confluence with other technical factors, if created.

After the range breakout, the market seems to be moving in a bullish direction. We will continue looking for bullish opportunities on EURUSD.

EURUSD long position from 1.1335

Jan 16 2022

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