EUR/USD has been on an uptrend on a macro perspective, having made a correction and being now sitting at Support Zone 1 and touching the lower trendline of it's Ascending Channel. Two possible scenarios:
Long:
-If price fails to break bellow Support Zone 1 and the trendline, making a rejection at this zone, a continuation of the bullish trend may be on the way and in that case we may look for long entries on a lower time frame.
-RSI is not oversold yet, so a long position without confirmation is very risky.
-First target around 1.23.
Short:
-If price breaks below Support Zone 1 and the trendline, wait for a retest and look for short entries on a lower time frame.
-First target around Support Zone 2.
Always use stop-losses, a good risk management and remember this is not financial advice.
Long:
-If price fails to break bellow Support Zone 1 and the trendline, making a rejection at this zone, a continuation of the bullish trend may be on the way and in that case we may look for long entries on a lower time frame.
-RSI is not oversold yet, so a long position without confirmation is very risky.
-First target around 1.23.
Short:
-If price breaks below Support Zone 1 and the trendline, wait for a retest and look for short entries on a lower time frame.
-First target around Support Zone 2.
Always use stop-losses, a good risk management and remember this is not financial advice.