The exchange rate of the euro against the US dollar drops slightly during the early hours of Monday’s trading against the US dollar. The EUR/USD pair has become consolidated in the zone, but the upward trend is still expected, up to be a good place to continue falling. Investors expect that the EUR/USD market will soon be approaching at least the 1,12600 zone, which looks good in the context of intraday trading. Let’s take a look at the H4 chart.
The sentiment on the EUR/USD pair has slightly faded away, but growth is still expected. The euro exchange rate has recently built up an interesting sequence that can be maintained as long as the most important levels of the sequence are not disturbed. At this point it is difficult to talk about zone violations, so it is worthwhile to look at chart H4 to assess the most favourable scenarios for potential pair increases.
From the perspective of the H4 interval, a good place to get into long positions is both the current price and the slightly lower zone – which the pair should treat at this point as a system supporting further increases. The chart below shows a zone that should apparently slow down further declines and generate an upward impulse from its surroundings with the target of 1.12600 or 1.12800 if the sentiment on this pair is slightly more optimistic. If such a scenario is actually implemented, then it will only be possible to join the pair’s trend, which at this point, looking at the slightly broader context, is still a downward impulse. However, in the first wave it is worthwhile to try to play long positions in line with the prevailing short-term trend.
In our Facebook group, which you can join anytime: https://www.facebook.com/groups/328412937935363/ you will find 5 simple strategies on which my trading is based.