EUR/USD: Possible long move, after correction down to Fibo 61.8% and diagonal support

05.04.2017 / 10:22

Rating:

EUR/USD:

Date: 5 April, 2017

H4 Graph: Long term short trend, possible short term long move

Price of the pair made a high around 1.0900 and made a correction down to Fibo 61.8% and horizontal support. There is also a diagonal support in this same area around 1.06400. These 3 criteria are giving us a good odds for possible move higher from here. 50ЕМА does remain above the 200 exponential moving average. After this correction, this is a good place for a long position. The horizontal support was tested two times, which increases the chances for a move up from these levels.

DEM: Close to the oversold area but turned up and moving up out of that area. Possible signal for long with bullish divergence of the indicator with price.

Alternative scenario: If the price continue down and passes below its previous swing low and diagonal support, this will most likely cancel the bullish setup.

Price for entry long around: 1.06700

SL: 1.06200

Trader - S. Fuchedzhiev

Varchev Traders

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EUR/USD: Possible long move, after correction down to Fibo 61.8% and diagonal support

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