EurUsd: 25th of October price action review

This is the chart with the arrows I posted in the previous post (don't forget the comment that every SR level could turn the price direction).

There was a turn at the 61.8 fib retrace of the last 4h swing down in line with (almost) with a weekly CP and support zone at the end of last week and a start of this one:

The price broke the fib by less then 3 pips and there was quite some fight with five touches on a 5m TF. The pair is now OS from 1h TF down.

Here's the daily chart just to see the purple trend lines:

I just noticed a small bearish divergence on RSI - see the arrows on the pic above. Back to the 4h chart. The first fib extension seats just at the start of the next SR zone 2885. Some pips above a weekly S1 pivot and crossing the zone the second rising daily trend line. 4h chart:

I see 3 possible scenarios:

  • down to the second daily trend line and support zone without any significant pullback
  • triangle consolidation between the rising daily and a falling 4h trend line
  • HL will hold here in the SR zone 2927-2937 and bounce the price and break the 4h falling trend line

If 2927 is a temporary bottom and we will see some pullback here is the fib study on the last 1h swing down:

The arrows on the chart above are my best guess what could happen.

I hope you enjoy the post and could make some nice trades.



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