Home EURUSD Higher Highs and Trading Above W1 Support –
EUR/USD Daily, Opinions

EURUSD Higher Highs and Trading Above W1 Support –

eurusd higher lows price action

EURUSD has suffered quite heavy losses in the last few trading months – thanks to the strength gained in the USD. We all know that these trends don’t last forever and the markets can shift from bearish to bullish sentiments overnight. The EURUSD downtrend looks like as it has run out of steam as the market overshot a weekly support level (major turning point on the weekly chart), consolidated, then shot back over the weekly level. Drawing support and resistance levels from the weekly chart can be very helpful in spotting potential reversal points.

The daily chart has been printing higher highs and higher lows, the classic signs of a developing uptrend. This week we see a bullish power move punch back up through weekly support, then last session come down and re-test the level from the top side. Moves down lower into the weekly support were rejected by the bulls – creating a bullish rejection candle that we can work with.

If this bullish rejection candle takes off, we could see the push back into new highs  and develop into a new bullish uptrend. Currently waiting for a retracement entry to be triggered to tighten up the stop loss spread here.

 

Dale Woods

Dale Woods

The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.