Hi traders and welcome to my channel, if you enjoy my FREE Technical Analysis๐ and Trading Tips๐, support the idea hitting the LIKE๐ button and don't forget to SUBSCRIBEโ๏ธ my channel, you won't miss anything!
๐ขForex Pair: EUR/USD
โชTechnical Analysis: In the weekly time frame, since March 2020, the price has been following a clear uptrend, creating a rising wedge pattern.
In the daily time frame, on the 4th on November 2020, the price got a strong rejection on the dynamic support line that pushed it up in a clear uptrend, reaching the level 1.23505 before getting a trend correction. On the 15th of January, the price bounced on a secondary trendline, breaking through the resistance level at about 1.21560 and it's now re-testing the same level.
In the h4 time frame, since the 6th of January 2021, the price has been following an interesting falling wedge, breaking its dynamic resistance line on the 19th of January. It's already got a rejection on the same level and it broke a daily S/R zone at about 1.21500. The next price action on that zone will be essential to understand the next market movement.
๐ดConclusion: The falling wedge pattern is usually a continuation pattern and I'm confident to see the price growing more until the next resistance zone at about 1.22750, that would be also my trading target. I won't open any position right now because the price is currently overbought, instead I'll be waiting for a more re-test on the current level and entry long with a clear rejection.
Stay tuned for Updates and Trading Signals! What's your opinion? Share your idea writing a comment!
โ ๏ธPlease note the views are not investment advice and should be used only for educational purposesโ ๏ธ