Good Morning traders! Today we are going to share with you our multi-timeframe vision in EUR/USD. This pair is in a particular and somewhat dangerous situation, and we may see a sharp drop in price during the next few weeks.
First, we are going to analyze the daily chart:
🔸We can see an uptrend that lasted more than a year, where we can draw a clear channel. This channel was broken to the downside recently.
🔸Since then, the price has been in a corrective process with no clear direction, but if we analyze the price action of the last few days, we see a clear bullish weakness and bearish intentions.
Let's take a look at the 4H Chart:
🔸To confirm the continuation, the first step is to see a break of the last low, which would imply a break of the current consolidation.
🔸If this happens, we would be in bearish territory.
What areas should we take into account if this happens?
🔸First, the minor zone of 1.1700. From here, we have a distance of only 100 pips to the next support zone, so it can be a bit dangerous to look for trades here. It is one where there will probably be interesting demand.
🔸The best thing would be to wait for a break in the 1.1600 area since if this happens, there is a clear path to the next support area at 1.12000.
First, we are going to analyze the daily chart:
🔸We can see an uptrend that lasted more than a year, where we can draw a clear channel. This channel was broken to the downside recently.
🔸Since then, the price has been in a corrective process with no clear direction, but if we analyze the price action of the last few days, we see a clear bullish weakness and bearish intentions.
Let's take a look at the 4H Chart:
🔸To confirm the continuation, the first step is to see a break of the last low, which would imply a break of the current consolidation.
🔸If this happens, we would be in bearish territory.
What areas should we take into account if this happens?
🔸First, the minor zone of 1.1700. From here, we have a distance of only 100 pips to the next support zone, so it can be a bit dangerous to look for trades here. It is one where there will probably be interesting demand.
🔸The best thing would be to wait for a break in the 1.1600 area since if this happens, there is a clear path to the next support area at 1.12000.