EUR/USD to Break 2018’s Highs?
EURUSD has shown us signs of buyer momentum. As we look at the monthly chart on EU, we can see price forming new higher lows. With that being said, we need to be aware of strong resistance that EURUSD has not been able to get past since February 2018.
Dropping down to our weekly timeframe, we see continued buyer bias with price respecting the weekly support level of 1.17500. Also, be mindful of the double top formed on the weekly TF. Does this mean that sellers are taking control? That won’t be the case until we get a break and close of previous structure and support.
Coming into more recent price action on the daily time frame, we see a huge sell off from the 1.22660 level. We see price continuing to make lower highs on the Daily TF and it looks like we are getting a retest of previous structure/resistance. When we reach scenarios like this, again, we need to be patient. We either look for selling signals at this resistance or wait for a breakthrough and retest and look for buy positions.
Dropping down further to the H4 tf, we can draw a trend line and see that price breaks through and continues higher. This lays out some other scenarios for us to consider when it comes to trade opportunities. We can look for a retest of the trendline and if price were to retrace from its current level, we can see that our 61.8 fib extension lines up perfectly with a trendline retest.