As you can see, EUR/USD‘s 4-hour time frame shows that it was unable to make a new “lower low.” In fact, price broke through the falling trend line and actually made a new swing high.
I want to jump in and ride the move up so I zoomed in on the 1-hour chart to find a better entry. I haven’t quite pinpointed where I will buy, but using the Fibonacci retracement tool, I’ve spotted a decent entry area around the 1.2715-1.2750 price range. It’s the area between the 38.2% and 61.8% Fib levels.
The Stochastic also shows that conditions are oversold, which could mean that sellers are running out of steam. Once I see candlestick patterns that confirm my long bias, only then will I pull the trigger.
On the fundamental side of things, the recent roster of economic data from the eurozone came in better than expected. As Pip Diddy reported, the GDP reports of France, Germany, and that of the entire region topped forecasts yesterday and gave the shared currency its much-needed boost.
I think that the positive vibes coming from these positive figures will still carry on in the coming trading days. After all, it would seem that markets widely priced in negative growth figures from Europe before the GDP reports were released.
So there ya have it! That’s my trade idea. What’s yours? Share them with me and the rest of the community!
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