Looking at the daily chart EURUSD continues its correction of the Jan 2021 to October 2022 bear market, moving sideways in a triangle pattern. Mid July 2023 saw a test of resistance from the 61.8% Fibonacci retracement level on the bear market which held and we saw a strong move lower to the now confirmed trendline drawn from the September 2022 low.
Current price action looks again set to test this trendline for support. This area falls in-between the 50% and 61.8% Fibonacci retracement levels from the move down from the 17th of July high.
Looking to place a potential long trade pending a test of the trendline holding. I would then be looking for a move higher to test the upper trendline drawn from the July high. Stop would be placed just below the 61.8% Retracement level and S1 support line.
Should we breach S1 support level, I would then be looking to the downside for further trade opportunities. This would indicate a triangle breakout and we could potentially see a move back to the September 2022 low at S3.
Current price action looks again set to test this trendline for support. This area falls in-between the 50% and 61.8% Fibonacci retracement levels from the move down from the 17th of July high.
Looking to place a potential long trade pending a test of the trendline holding. I would then be looking for a move higher to test the upper trendline drawn from the July high. Stop would be placed just below the 61.8% Retracement level and S1 support line.
Should we breach S1 support level, I would then be looking to the downside for further trade opportunities. This would indicate a triangle breakout and we could potentially see a move back to the September 2022 low at S3.