EURUSD took a massive bearish dip and then started its bullish momentum, after forming higher highs and higher lows. Right now, market broke the major resistance area, which was also an order block, at the price of 1.1270. This broken resistance is now a support level, which is being tested by the market. The breakout of the resistance has been validated by candles opening and closing above the level. At this current support level, we will be looking to go long.

The descending trendline has been broken out for buys. Candles have validated the bullish pressure after the trendline was breached. After the trendline breakout buy, we were unable to catch the retracement long move. This is why, we will be looking to go long at the support level of H4.

At the support level, we have a Fibonacci retracement level of 75-78.6%. This level is in confluence with the support level and will be a pushing factor for the market to move up.

Both the EMA’s are in a bearish death cross. That being said, EMA 50 was pierced recently after retesting the EMA 200 at the upper side. This EMA 50 retest is at the same support level where other technical parameters are aligned. Hence, a stronger probability for the market to continue up.

Both the oscillators are in a bullish region. After being neutralized at the 50 and 0 levels for RSI and CCI, we will have the smooth factoring of all technical factors at the support level.

It should be noted that on 4/2/2022 is the NFP, which is the major news catalyst to move EURUSD. Even if we take a buy, we have to be aware of this fact.

EURUSD in a bullish trend

Feb 03 2022

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