EURUSD has just impulsively broken above a strong level of resistance, marked with the red line.
We forecasted this possible trade idea last week.
Price is moving in a strong up trend on the 1H and 4H charts.
We are now looking for price to retest the resistance now turned support, and/or one of the up-trend lines marked on the chart.
We would like to see price ideally retest the S/R zone in line with an uptrend line, adding more confluence to a long position.
This would be confirmed with a strong bullish engulfing/pinbar candle formation on the 4H or 1H time frames
We are also aware this can be a fake out, and price can reject higher prices and fall back below the S/R area and back into the range, targeting the lows. Thats why we always wait for confirmation and confluence when trading.
We forecasted this possible trade idea last week.
Price is moving in a strong up trend on the 1H and 4H charts.
We are now looking for price to retest the resistance now turned support, and/or one of the up-trend lines marked on the chart.
We would like to see price ideally retest the S/R zone in line with an uptrend line, adding more confluence to a long position.
This would be confirmed with a strong bullish engulfing/pinbar candle formation on the 4H or 1H time frames
We are also aware this can be a fake out, and price can reject higher prices and fall back below the S/R area and back into the range, targeting the lows. Thats why we always wait for confirmation and confluence when trading.