I’m back for more EURUSD price action interpretations.

The trade analysis I’ve made on Friday went according to plan giving me an overall 1 win and 2 stop losses since I started last week.

https://www.finlogix.com/analysis/20240126/eurusd-intraday-analysis-and-trading-plan-for-january-26-2024

Just a recap, during Friday’s trading session, EURUSD price went lower first below the plan’s take profit mark and printed a weekly swing low followed by a strong rebound after supports level were held on the said drop.

We then hit our entry after the strong price rebound back inside the two 4H FVGs (both bearish and bullish) almost hitting our stops but fortunately the trade got confirmed by the next red 4H candle. It was a close trade!

I have not followed suit yesterday after the EURUSD has printed a new multi-week low.

Take note that we have two major economic news coming this Thursday and I expect for a moderate to heavy volatility.

It seems to be that I want to trade back in prior the news coming out relying heavily on EURUSD’s 2-day price actions.

Let’s re-assess the higher timeframe candlestick patterns:

Yearly Candle: Medium Red Body With Short Lower Tail Wick

Monthly Candle: Medium Red Body With Short Lower Tail Wick

Daily Candle (Previous Close): Red Long Lower Shadow

The yearly and monthly candles continue to become bearish! Last weekly candle closed in Red Doji With Medium Body and the current is forming a Red Spinning Top. There is a downtrend happening in the last 4 weeks based on these high timeframe candlestick patterns.

Yesterday’s candle close is a Red Long Lower Shadow telling us that although price continues to go lower, there were willing buyers involved that sold to the immediately rally resistances.

Now that the EURUSD had both the new weekly and monthly lows combined, I think the long stops are still targetted heavily towards last month’s low (December 2023). Can be probable if we have a hawkish FOMC speech and unchanged Fed rate cuts this Thursday favoring the Greenback.

Even though the downtrend proving itself this month, I am still betting for a reversal after I’ve spotted a new 1H FVG that has been overlapped. This time I use 1H timeframe as entry for a long position inside the overlapped FVG.

I will target the profit level a little below January 24 swing highs while the stop loss is set a little below the weekly/monthly swing lows.

A total of 3 risk:reward score trade setup.

EURUSD Intraday Analysis and Trading Plan For January 30, 2024

Jan 30 2024

Stop Loss -0.29%

Holding time 1d22hr

1.08255

Entry price

1.07937

Stop loss price

1