The Euro recently encountered resistance at the 1.0890 level against the US Dollar, prompting a downside correction. This decline was marked by a break below a key bullish trend line, with support situated at 1.0860 on the hourly chart of EURUSD. Meanwhile, the USDCHF pair is demonstrating positive momentum, trading above the 0.9110 resistance zone. Notably, there is a connecting bearish trend line forming with resistance at 0.9130 on the hourly chart. Given these conditions, USDCHF may continue its upward trajectory, potentially targeting the 0.9155 resistance level.
AUDUSD – H4 Timeframe
AUDUSD on the 4-hour timeframe is currently trading within a wedge pattern with a possibility of a breakout below the support trendline based on the recent break of structure as highlighted on the chart. Following this, I expect to see a retest of the supply zone that engineered the break of structure, in order for price to resume the bearish momentum. It should be noted that the overlap of the trendline resistance with the supply zone serves as a crucial confirmation of the bearish trend.
Analyst’s Expectations:
- Direction: Bearish
- Target: 0.65442
- Invalidation: 0.66854
EURUSD – H4 Timeframe
EURUSD has recently been rejected off the supply zone and the trendline resistance. The rejection broke structure downwards, indicating a likelihood of a continued bearish move. I expect to see a break below the trendline support, leading to a retest of the supply zone and the confluence of the trendline resistance.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.07465
- Invalidation: 1.08960
GBPUSD – H4 Timeframe
GBPUSD on the 4-hour timeframe as seen on the chart has just been rejected off the supply zone around the 88% of the Fibonacci retracement of the previous swing. In light of this, I anticipate a break below the immediate low, which will make room for price to retest the supply zone that engineered the break of structure. In simple terms, this means that my sentiment on GBPUSD is bearish as soon as price breaks below the most recent low.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.25674
- Invalidation: 1.28092
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
