Good morning traders,
If you’re a reader of the blog, you’d know that we’ve been watching the bull flag on EUR/USD. If you’re not, then please click the link to that last blog and take a look at why I’ve drawn some of those key higher time frame levels before we continue.
The EUR/USD daily chart is pretty much the same, but price is starting to bounce off the horizontal line that we had on our charts from before. Potential higher time frame resistance that we’re looking to turn to support if the bull flag is going to break out:
Now after looking at the higher time frame chart, take a step down into the hourly chart and take a look at the price action that’s unfolding:
So if the higher time frame bull flag and possible retest of previous resistance as support is telling us to look for longs, this level could be one such opportunity.
1 to 2 shows a higher high signaling a possible intraday trend reversal and then 3 is a simple retest of previous short term resistance as possible support. A level to manage our risk around if getting long.
Best of probabilities to you!
Dane Williams – Vantage FX
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Source: Vantage FX Blog