The New York Session created a new 4 hour high this morning, that may be indicative of a new bullish trend. In my previous articles, I detailed the criteria for this pending bullish trade as:
#1 A break of the 4 hour trend line that has been acting as resistance.
#2 A break of the most recent 4 hour highs at 1.11865
At his point both of these criteria have been met…
If we continue to see higher highs and higher lows in the 1 hour and 4 hour time frames on the EURUSD, over then next few days there will be opportunity to buy the pullbacks in this newly forming bullish trend.
If the lows at 1.11500 are broken, then this bullish setup is invalidated and there should be bearish continuation.
The chart below is showing the new 4 hour highs formed in New York.
This chart below shows the analysis waiting for previous highs to break thereby fulfilling the definition of a bullish trend; higher highs and higher lows.
Confirming a higher high in the 4 hour time frame is the first part of this equation, we now need to confirm higher lows and then we have a new bullish trend…
Below are the new weekly pivots for the EURUSD; price is now below the Weekly Central Pivot. With higher highs and higher lows we can see the EURUSD potentially at WM4 by the end of this week…
If this chart is too small to clearly view the levels, you can drag it to your desktop and enlarge the image by zooming in.
The Weekly Pivot is at 1.1196
Weekly M3 is at 1.1223
Weekly R1 is at 1.1249
Monthly R1 on the EURUSD is at 1.1227, which is notable resistance.
Below, you can see that price has pulled back to the 38.2 Fibonacci retracement of the bullish move in the today’s New York Session.
With bullish continuation, I would look for valued buying opportunities within pullbacks in the bullish price action.
News for the New York session tomorrow the 29th we have Consumer Confidence and Yellen speaking.
Please check the economic calendar for the times of these news events for your geographical regions.
U.S. Dollar Analyst, FOREX.TODAY