EUR/USD: Major Support Area Near
This pair finally had the correction that was overdue. This kind of correction makes for a great deal of confusion. Keep in mind, the price is still trading above 1.4250 and 1.4000 which are very significant support levels. There are some bullish arguments left in this pair: Price has penetrated a significant bullish trend line on the 4 hour time framew which it has not completely cleared yet, The 4 Hour CCI is showing a clear higher low which means bearish momentum is declining, and price is hesitating around the 1.4350 area which was a previous support. At the same time, there are some new bearish arguments now that this correction has appeared. Most notably is the weekly candle that has closed as a bearish engulfing candle. We have not seen one of these on that time frame in a long time. So at this point, I am leaning more toward the long side, but I want to see clear stability before taking any kind of swing trade position., A higher low, a break of a previous swing high, a bullish engulfing candle on the 4 hour time frame would be some confirmations of stability. Without these signs, I cannot define risk or any specific levels to trade on the larger time frames. The key here is to wait. If price continues to sell off and breaks the key support levels mentioned earlier, then I simply step aside and reevaluate.
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