EURUSD has been in a downward spiral. The market was hard to predict in the recent times. Now that things have started to move in a positive tone for the fundamental aspect of Russia Ukraine, we might see a continuation of the EURUSD trend.

Market tapped the support level at 1.1110. This level is a strong demand level. This level needs to be respected and has a strong indication to move the market up. On the higher timeframes, we also see an inverse head and shoulders on the daily timeframe. On higher time frame, we have formed a higher low and a double top. This double top needs to be broken and continue forming a higher high to form a bullish structure.

Market is a bullish wedge pattern. Both the resistance and support trendlines have been tapped once. The support level has been tapped twice as well. Once the descending trendline tends to be broken out for buys, there will be an added confirmation for the EURUSD to continue its move up.

As we have drawn the fibonacci retracement level, the golden level stands aligned with the support level. This retracement would be our entry point.

Both the EMA’s are bearish and have broken out for sells. The death cross is also bearish. Now, at the support level, we anticipate the move up to retest the EMA. This retest would be our profit target.

Both the oscillators are in a bearish region, heading back towards the neutralized levels after tapping the over sold region. In this scenario, we will need to see some sort of a divergence at the over sold region. Market may be at the support level, with the bullish divergence, will turn out to be a strong bullish signal.

We still need to be vary of the political live feed. This can suspend the technicals temporarily with wicks on the either side. For now, we are still bullish and would be looking to buy at the drawn support.

The gaps need filling!

Feb 28 2022