The EURUSD has found strong buyers in the 1.0800 zone and is well confined within the borders of a Bullish flag on H4 time frame. The situation with this pair is really interesting as we have a possible hidden bearish divergence in a bull flag with an inverted head and shoulders pattern in progress. If the MACD prints a HH and the price prints a LH that would confirm the hidden divergence and the price should drop towards 1.0850 again.
Because the price is bullish on intraday time frames but still bearish on higher time frames, the only valid option for bears is to fade rallies around POC - 1.0950-1.0970 zone which shows a strong confluence (possible hidden bearish divergence, H3, the top of the flag). I see this zone for potential short trades. The stronger confirmation would be if hidden bearish divergence gets confirmed so pay attention to both possible divergence and POC zone. If the price closes above 1.0985 on H4 time frame we could see 1.1045 as it will also confirm a breakout of inverted head and shoulders pattern.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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