EURUSD just made a pretty good bullish pullback from the bearish run it has had since the 20th of September.
I'm only looking at the daily and 4H forex charts on this one and I have high conviction that EURUSD will be heading higher.
Im good at predicting fundamentals, but just by looking at price action I really believe that tomorrows US jobs data will weaken the USD.
I get this conviction by reviewing the USD dollar index (USDX) and multiple USD pairs.
Before we move into EURUSD's daily forex chart I want to quickly remind you that the below is not advice furthermore I make mistakes and lose trades just like everyone else... but the reason I earn in the markets is because I employ risk management and I have a "future plan" so I know when I risk big and when I risk small.
EURUSD DAILY CHART
If EURUSD's daily #forex chart closes at or near its highs the pair will complete a "BULLISH ENGULFING" pattern. - This means that the chances of the pair continuing to head higher are very high.
of-course a lot can happen in a trading day so don't bet all of your chips on this one!
Lets go over the 4-hour forex chart also.
EURUSD 4-HOUR CHART
By the way, you can simply click on the images and they will enlarge...
Ok as you see, we have a possible BREAKOUT of a bearish channel on EURUSD's 4H chart, we also have a breakout of the EMA/DC combo...
The take profit is not too far away but I doubt it can be reached in today's trading session as unless some news kicks in.
Generally I believe I will be holding this trade till tomorrow and into the news, I know it sounds scary but if my TP is not reached, and my conviction remains high, I will hold the trade.
You are welcome to join my trading room where I will release updates of all my trade ideas.
Now, lets wrap this post up with an quick view of USDX (the US Dollar Index)
USDX 4 HOUR CHART
I've mapped out the key trading levels, the supports are red and the resistances orange.
We are currently at a support and we could make a retest of the black broken trend line, but only time will tell.
Remember that the USDX is one of the best ways to measure the strenght of the US dollar versus other currency pairs.
Anyway, thats it from me!
Seize those pips!