In this article, we will discuss the major EURUSD price action for this new week and what major levels to observe going forward. Small time frame Forex trading strategies must kept within the daily channel. Let us discuss the details below;
MULTI-TIME FRAME EURUSD PRICE ACTION ANALYSIS
Monthly EURUSD chart.
Look at the monthly chart below, the average swing movement on this pair is almost complete. The marked lime green lines indicate the average swings. Price is now onto major resistance zone but no major signs of reversal just yet.
And if you clearly look at EURUSD price action on this chart, the size of the previous congestion circled green, is almost same as other previous congestions circled blue. This means we still have room for more upside. This is likely because price makes an larger move that average after such congestions. The immediate resistance zone will be the red trendline marked T
The levels to watch critically on the monthly chart are trendline T and S. Next we will look at the daily time frame to see what exactly is happening now.
Daily EURUSD chart
As mentioned previously, the price is in a major monthly resistance zone, the mostly likely occurence is a congestion. These congestions are mainly clear on the lower time frames like the daily time frame before a new swing is made. And now we having a congestion as we will discuss on the chart below.
Let us now take a look at the daily chart below and see whats happening in the price action
From the chart above, we see EURUSD price action as a channel congestion held by trendlines A and B. The green trendline is the monthly S trendline. A break and close of candle below A may land price into immediate support around 1.20915 marked with a black line.
Break and close of candle above resistance trendline B, preferably weekly candle close may lead price into the monthly T trendline resistance target.
Since price is now on the daily time frame is in a channel congestion, trading on the small timeframes like 4-Hour and Hourly must be kept within the channel. This means targets should not be set beyond trendline A and B until we have a daily/ weekly candle break beyond the trendlines
Let us take a look and discuss the EURUSD price action on the hourly chart.
Hourly EURUSD chart
The EURUSD price action now on the hourly timeframe shows a small price congestion held by small red trendlines marked r & h as shown on the chart below.
Close above r may lead price into immediate support marked with blue horizontal line Y around 1.23719 resistance zone. Close below h could lead price into immediate support around 1.22790 zone marked with blue horizontal line X.
The most important thing now is to keep the trading on the small timeframes like 4-Hour within the daily channel. This means targets should not be set beyond trendline A and B until we have a daily/ weekly candle break beyond the trendlines