Earlier, we took a short on EURUSD which played out really well giving us a reward ratio of 1:3. The target was the bottom support which we anticipated for the market to touch. Now that it has touched the level, it printed the bullish price action along with bullish engulfing candles and started to move up. On another tap down, which would potentially be a retracement, we will take a long position. Keep in mind, we have not entered the bullish trend yet as only the higher highs is formed and the bottoms remain flat with same lows. 

The descending trendline is due for a breakout buy. Earlier, we had a breakout buy from the trendline and market had validated the whole price action for the bullish confirmation. Another breakout buy would act as a catalyst for the market to continue moving up. 

There is no retracement indication in this given setup for longs. 

EMA 50 is still bearish and the market has to tap the EMA 50 or break it as a breakout buy. Either way, the EMA is still far off from the current prices and its to early to reflect any possible move from EMA point of view.

RSI is at 47 which is still bearish. We need to wait for the market to head over to the over sold region in order for the market to form a bullish divergence, either hidden or regular, and then pave a move up.

EURUSD buys from the bottom

Sep 06 2022