EU: Double-Bottom Formation at Key Support Zone
The EUR/USD is currently testing a critical support zone around 1.0800 on the Daily timeframe, where price action shows potential for a bullish setup. The pair has formed a double-bottom pattern, with the second low forming at this same support level, indicating that selling pressure is weakening and buyer interest may soon increase.
Technical Insights:
Daily Support Zone and Double Bottom: Price has created a double-bottom pattern at the 1.0800 level, reinforcing the significance of this support. This pattern is a classic reversal signal, often signaling a potential trend change, especially when occurring at a major support zone.
Confirmation with Bullish Reversal Pattern: For confirmation, look for a bullish reversal candle pattern on lower timeframes (such as H4 or H1) at this support level, like a bullish engulfing or pin bar, which would signal a potential upward move.
Trade Plan:
Entry: Consider entering a buy position if a strong bullish candle pattern forms around 1.0800.
Stop Loss: Place below the recent low of 1.0750 to protect against further downside.
Target: Initial target at 1.0900, with the potential to extend higher if the bullish momentum sustains.
The double-bottom pattern, combined with the strong support zone, provides a solid basis for a potential buy opportunity, emphasizing the importance of waiting for confirmation before entry.
EURUSD EURUSD EURUSD EURUSD
Technical Insights:
Daily Support Zone and Double Bottom: Price has created a double-bottom pattern at the 1.0800 level, reinforcing the significance of this support. This pattern is a classic reversal signal, often signaling a potential trend change, especially when occurring at a major support zone.
Confirmation with Bullish Reversal Pattern: For confirmation, look for a bullish reversal candle pattern on lower timeframes (such as H4 or H1) at this support level, like a bullish engulfing or pin bar, which would signal a potential upward move.
Trade Plan:
Entry: Consider entering a buy position if a strong bullish candle pattern forms around 1.0800.
Stop Loss: Place below the recent low of 1.0750 to protect against further downside.
Target: Initial target at 1.0900, with the potential to extend higher if the bullish momentum sustains.
The double-bottom pattern, combined with the strong support zone, provides a solid basis for a potential buy opportunity, emphasizing the importance of waiting for confirmation before entry.
EURUSD EURUSD EURUSD EURUSD Comment
Price start moving as expected:
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