Hello traders . Let's consider the trading pair -
EUR/USD.
Daily timeframe. We observe a fairly stable bullish start with a bounce off the
1.16000 level, which could be the beginning of a long breakout from the southern trend, but it's too early to think about it at all. Currently, I view this situation as a long correction for a continuation of the short trend. The situation is not clear-cut, so it's not very favorable for trading. Let's see what happens next.
4-hour timeframe. The price has already formed a squeeze and is attempting to move upwards by breaking the
1.16481 zone, but it seems to me that now is not the time for a breakout, as the
American session is ending, speculators are leaving the market, and this will most likely cause the price to reverse back into a short position. I must say that the situation here is better than in
Pound/Dollar, where more bearish weakness is evident. Here, more persistence and stubbornness of the bulls are showing. In any case, the situation for trading is not straightforward, quite a headache. If the price manages to break above
1.16481, and then shows a price reversal into a short with a bearish engulfing on the daily chart or some bearish pinbar, that would be quite good and promising for a short position, as below
1.16000 there is an empty zone for a downward movement.
