The EUR/USD presents another excellent long-term buying opportunity based on higher timeframe support and technical analysis.
Trade Setup
- Current Price: 1.0546
- Stop Loss (SL): 1.0430
- Take Profit (TP): 1.0900
Analysis
- Higher Timeframe Support:
The pair is at a critical support zone, previously tested in the past. This level has held firmly, indicating a potential bounce and a high-probability trade setup. - Double Bottom Formation:
Similar to GBP/USD, EUR/USD is forming a double bottom pattern at the support zone. This is a strong reversal pattern that often leads to significant bullish momentum. - RSI Divergence:
The RSI on the daily chart indicates bullish divergence, a key signal for a potential upward move.
Position Strategy
This is a position trade designed for long-term holding. The target aligns with a key resistance zone, providing an excellent risk-reward ratio.
Recommendation
Buy EUR/USD now at 1.0546 with the following parameters:
- Stop Loss (SL): Place below the support at 1.0430.
- Take Profit (TP): Aim for the next resistance zone at 1.0900.
Final Thoughts
With strong confluences including higher timeframe support, a double bottom pattern, and RSI divergence, this trade setup has high potential for success. Patience is essential for position trading, and this trade could yield significant returns.
Trade wisely, and let’s profit together!
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