The EURUSD pair seems to have difficulties breaking below the 2018 low of 1.1176, printing bullish candlestick patterns in the last two days.
Even though the pair has been trading in an overall downtrend for a few months now, notice the bullish wedge pattern in forming. Sellers are losing steam in pushing the price lower to large extent.
In addition, the pair could be finding support at the 61.8% Fib level, drawn from the 2017 low to the 2018 high.
Given the overall downtrend which is still active, I am still reluctant in placing a counter-trend trade, although the pair could make a short-term up-move to the upper wedge line.
For a longer-term buy setup, we need to wait for a break of the wedge pattern to the upside (above 1.14).
Even though the pair has been trading in an overall downtrend for a few months now, notice the bullish wedge pattern in forming. Sellers are losing steam in pushing the price lower to large extent.
In addition, the pair could be finding support at the 61.8% Fib level, drawn from the 2017 low to the 2018 high.
Given the overall downtrend which is still active, I am still reluctant in placing a counter-trend trade, although the pair could make a short-term up-move to the upper wedge line.
For a longer-term buy setup, we need to wait for a break of the wedge pattern to the upside (above 1.14).