EUR/USD - Bullish Divergence - Chance for Euro
Aktualisiert
After a lot of weeks of decline and sideways, there is a potential for Euro to grow up!
When we look on the chart we can see a really strong bullish divergence on MACD and RSI also. The market is doing every time a new LOW but indicators are doing a higher lows. There is a possibility for Euro to rise again (mid-term). We can see 3 strong divergences and it doesn't mean that the market will surely grow! There is a big chance but the market can do one more low and then it would be much more stronger signal.
We could spot also a Falling Wedge pattern. It is a bullish pattern, but we need confirmation. Without confirmation we can do a one more bottom and the signal will be stronger. There are more set-up to do when we want to trade this. If we go to the market without confirmation (f.e. now), we need to have a really tight Stop Loss. This way is very risky but with tight SL it won't be a big deal if we hit that. Personally, i would trade the second set-up after confirmation.
1. SET-UP - WITHOUT CONFIRMATION (AGRESSIVE)
BUY: 1.133 - 1.141
Target: 1.144
1.15-1.16
1.154
SL : 1.126
For me, there is better set-up the second one and I will describe why. I will join the market after the confirmation. It means after break and close above the red trendline (Falling Wedge break). When this won't happen now and when the market breaks the white short-term trendline, there is a big chance of retest the orange trendline. At this point divergence would be much stronger and there I would do agressive open.
2. SET - UP
BUY: Daily close above the falling wedge
Targets will be similar (could be the same). I will post later (it depends on how market will develop, SL also).
When we look on the chart we can see a really strong bullish divergence on MACD and RSI also. The market is doing every time a new LOW but indicators are doing a higher lows. There is a possibility for Euro to rise again (mid-term). We can see 3 strong divergences and it doesn't mean that the market will surely grow! There is a big chance but the market can do one more low and then it would be much more stronger signal.
We could spot also a Falling Wedge pattern. It is a bullish pattern, but we need confirmation. Without confirmation we can do a one more bottom and the signal will be stronger. There are more set-up to do when we want to trade this. If we go to the market without confirmation (f.e. now), we need to have a really tight Stop Loss. This way is very risky but with tight SL it won't be a big deal if we hit that. Personally, i would trade the second set-up after confirmation.
1. SET-UP - WITHOUT CONFIRMATION (AGRESSIVE)
BUY: 1.133 - 1.141
Target: 1.144
1.15-1.16
1.154
SL : 1.126
For me, there is better set-up the second one and I will describe why. I will join the market after the confirmation. It means after break and close above the red trendline (Falling Wedge break). When this won't happen now and when the market breaks the white short-term trendline, there is a big chance of retest the orange trendline. At this point divergence would be much stronger and there I would do agressive open.
2. SET - UP
BUY: Daily close above the falling wedge
Targets will be similar (could be the same). I will post later (it depends on how market will develop, SL also).
Trade geschlossen: Ziel wurde erreicht
AGRESSIVE SET-UP - 1.st target - 1.144 Reached.. Congrats. Prepare for confirmation and close (daily candle) above the Falling Wedge.Anmerkung
Watch out for bearish pin-bar (6H). If pin-bar was confirmed, we could see a decline to white trendline. We have reached our first target, so I would be without position right now and wait for Falling Wedge break. But its on your own, your risk management and your decision...
Anmerkung
From Agreesive set-up we have reached 1.st target. But I didn't go in with agreesive set-up. I said that this could happen and we will see what will be next. If white short-term trendline breaks, the divergence will be stronger (what is positive for mid-term). I'm now still without position and waiting for confirmation. First valid confirmation was falling wedge edge breakdown.
Now we need to watch what market will do in area near the white trendline (watch out for breakdown.)
Anmerkung
We have got a confirmation!Trade geschlossen: Ziel wurde erreicht
We have reached our all targets with agressive set-up or with the 2nd one.
After confirmations we have nice profit.
If you are still in trade I would take my SL to B/E.
The Euro seems bullish, but there is a resistance - EMA 200.
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