EURUSD TA: Fibonacci, Bull Flags, and Data-Driven Entry Strategy

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Technical Analysis: EURUSD (Euro/US Dollar)

📈 The EURUSD pair is demonstrating strong bullish momentum on the 4-hour timeframe, with price action currently trading at 1.13638, well above the key 50% Fibonacci retracement level drawn from the previous range low to high.

🔍 The chart reveals a series of bull flags forming during the recent uptrend, suggesting continued buying pressure despite the pair trading at premium levels. This pattern typically indicates brief consolidation before further upside movement.

💹 From a Fibonacci perspective, the current price position above the 50% retracement level indicates strength in the Euro against the Dollar. However, this elevated position also creates potential for a healthy pullback to retest support before continuing higher.

⏱️ Today's upcoming US Retail Sales data release represents a significant market catalyst. Interestingly, this high-impact event could trigger a pullback regardless of the outcome:

If actual figures come in below forecast: Dollar weakness could prompt profit-taking after the recent rally
If actual figures exceed forecast: Dollar strength could naturally push EURUSD lower
🎯 Trade Idea: Monitor for a potential retracement toward the 50% Fibonacci level, followed by a bullish break of market structure on the 30-minute timeframe. This would provide a higher-probability entry point for long positions with a more favorable risk-to-reward ratio.

🔄 The presence of multiple bull flags suggests that any pullback may be temporary, potentially offering an excellent opportunity to enter with the prevailing trend at a better price point.

⚠️ DISCLAIMER: This analysis is provided solely for informational purposes and should not be construed as financial advice.

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