EURUSD Major Forex Pair

The EURUSD Forex pair has demonstrated a strong downward movement recently, as illustrated in the 1-day chart. The price encountered a falling wedge, showing signs of weakness and breaking out when the price got to the bottom of the wedge. The price has now broken out of the falling wedge and it has re-tested the newly established demand area, indicating a potential shift in market dynamics. This movement has resulted in the formation of a daily bullish engulfing candle, suggesting buyers are now in control; to move the price higher.  

The 4-Hour Breakout

The EURUSD pair has now broken out of a 4-hour bearish correction with momentum. The momentum is not that strong, but we can work with this. The price is currently in the correction phase and the correction is looking weaker than the breakout, and that is a good sign.

The 1-Hour Correction

The current price movement is exhibiting an ABC correction pattern, as illustrated in the accompanying screenshot. To confirm a potential entry point for a buy position on the EURUSD Forex currency pair, we are looking for a bullish engulfing candle to close above the ABC correction on the 1-hour chart. This would signal a possible shift in momentum and an opportunity to enter the market.

I will provide an update as soon as we observe more price action later in the day. Thank you for your attention.

The Result