EURUSD has typically crashed to a two decade old historical low. This aligns the fact of a potential crash on EUR being weak. Fundamental reason being the EUR having 0% interest rate against the USD having 1.75% interest rate, which means, the investment pool has shifted its sights on to the US investment vehicles. 

That being said, we are looking at the H4 for technical analysis on EURUSD. Market is typically range bound between the swing resistance and support. We are looking at the triple bottom for the long positions on EURUSD. Overall, the trend is still bearish. We are just looking at the slight correction.

With trendlines, we only have one ascending trendline, which has been rejected by the price action. We anticipate market tapping the support forming tripple bottom regardless the trendline rejecting the prices.

There is no retracement factor in this setup.

EMA 50 acts as a strong foot hold in this setup. The EMA 50 has broken out for sells. Now that market is at support level, and we take long positions, for a long term correction, we can continue holding the position till the retest of EMA 50. Although the trend is bearish, thats why, the holding till the retest seems far fetched at this given point. 

RSI is at 45. According to our trading plan, the oscillator needs to form a bullish divergence on RSI at the over sold region. Once the divergence is formed at the tripple bottom support level, we will have a strong factor to go long.

Typical tripple bottom on EURUSD

Jul 13 2022

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