Technical Analysis Based on Breakout – Wait for a breakout below (1.2394-1.2370)

EURUSD – Up

Wait for a breakout below (1.2394-1.2370)

Technical observation

The pair on the 4H chart above while on an upward trend, retraced at a support zone (1.2394-1.2370) but could not penetrate below it, currently price is rallying within the zone and I expect a possible breakout below the zone to induce a bearish move of the price. You can either re buy the pair now but not for long, up to the key line 1.2537 or wait for a breakout below the zone then short EUR after a retracement to the zone towards (1.2200-1.2177),if that zone gets broken too then I expect a further decline in price towards 1.1926.

Technical levels

Resistance levels

R1.1.2472

R2.1.2434

R3.1.2452

Pivot

1.2416

Support levels

S1.1.2409

S2.1.2399

S3.1.2381

Trade signal

Wait for a break out below (1.2394-1.2370) then short EUR after a retracement to the zone with your take profit at 1.2189 stop loss at 1.2462.

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