EURUSD has been on a range on the Daily and the H4 chart. Today’s price action seems that the price is having a correction towards the downside. There is a level, which has the potential to be a strong level of Support. If that really happens and we get an H4 Bullish Engulfing Candle from that level, then an H1 breakout at yesterday’s higher high would be the signal to go long on the pair today. Let us have a look at the H4 EURUSD chart.
EURUSD Price Action Analysis – 5th July 2018
As we see that the price has been ranging. The level of 1.16810 seems to be the level of Resistance here and the level of 1.16425 might be the level of Support today. If the level of 1.16425 becomes the Support and it produces an H4 Bullish Engulfing Candle, then we should wait for an H1 breakout at the level of 1.16810 to take the long entry. Let us have a look at the summary of the trade…
- Buy Stop Order: 1.16810
- Stop loss: 1.16425
- Take Profit: 1.17430
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
If the price starts trending from bit up than the potential Support level, then the price might not go all the way. That is why it would be best if the price comes to the level that we have marked here and starts going towards the upwards. The breakout should look like a strong breakout too since this is a very strong level of Resistance. There is a saying “The stronger the Support/Resistance, the harder the breakout is.”
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