EURUSD Trading Analysis

@Colibritrader

Dear traders,

Since I wrote about the potential short indication on DAX (Germany30), this index has gown down about 350 points. Currently, it is still standing below the potential entry point.

I am seeing a bearish rejection candle, which bodes well for traders, who are looking to go long. Although, there is no major support or resistance area, so I believe it is more likely to see a continuation of the downtrend.

All in all, mixed signals, which tell me only one thing: DO NOT DO ANYTHING FOR NOW.

EURUSD Trading Analysis

On the other side, there was a lot of positive activity on the EURUSD front.

Initially, I missed a great trading opportunity to go long here. There was an inside bar just below the major support level at 1.1300.

This formation was apparently picked up by a lot of institutional traders and after a few more trading sessions it evolved into a 4-piece bullish engulfing pattern (as shown in the screenshot).

I will be looking for a small retracement towards the 1.1350 area and then looking for a bullish indication from the 4H chart.

There might be a major reversal point on the chart, which might lead the price higher to the next major resistance level at 1.1800. Therefore, there is a high potential trade that might be forming currently.

Happy Sunday,

Colibri Trader

p.s.

Did you check out my recent article on MT4 Tips and Tricks?

Also, check out why some of the best buying opportunities appear just below major support levels HERE

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