On the monthly chart, we can see that the instrument is still in the long-term downtrend Andrews Pitchfork channel. It has reached the upper channel line 99.60 level and got rejected from it. A break above this level is needed for an upside extension. Visible support is this Year’s low 94.45.
On a weekly chart, a new uptrend Pitchfork channel has been formed with an indicative rejection from 99.815 and this week’s long-tailed candle bouncing of the almost two years low 94.610. At this stage, we are expecting a test of the channel support line 92 taking into account FED is eager to cut rates to provide more liquidity to the financial system.
On a daily chart, we can see that the instrument is back into a broken rectangle and is testing the midpoint of its 98.55 level. This level should hold for a downside extension to 94Â and lower to 92 our point of interest as we move forward into the second quarter of the Year. 98.55 is also 75% of the Fibonacci resistance of the latest swing down.
Based on the DXY positioning ahead of the FED decision and ECB hold of cutting key rate further, EURUSD is entering perfect support for the long trade entry after a break above the long-term congestion zone and a falling trend line 1.1100 level Our trading system is turning bullish. You can take EURUSD long trade entry with the stop loss below 1.10300 level and target 1.113500 in the first swing upside.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
