EURUSD Trading Idea (20 December 2021)

I am sharing the technical analysis of #EURUSD for the week starting 20 December 2021. I’m using the following indicators:

  1. #channels-indicator
  2. #supply-and-demand
  3. #engulfing-indicator
  4. #chances-indicator
  5. #trend-line-indicator

I start my technical analysis with the weekly chart time frame then I scale down to M15. I also spot the patterns whenever possible.

Weekly time frame:

The first thing we should check in the weekly time frame is the trend lines, now we can see a downtrend.

Then the engulfing bullish candlestick is a sign for bullish pullback. This engulfing candle is for the Weekly time frame. This could be a sign for a pullback.

Next thing is the rising channel as we can see the price reached the bottom edge, which is a sign for a bullish move, but the Daily time frame channel is pushing the price down.

Now, the price is falling from a supply zone, which means that the price is expected to retest and fall. But not yet! Don’t make your decision as yet.

Go down to the daily time frame, we want to spot a sniper entry. Keep going.

Daily time frame

The next thing we should check is the daily time frame trend lines which is bearish.

Then the bearish engulfing candlestick is a sign for bearish entry, but hold on!

Next thing is the falling channel as we can see the price is right at the middle (indecision).

Now, the price is falling from a supply zone, which means that the price is expected to fall. But not yet! Don’t make your decision as yet. We’re still mixed up!

Go down to the hourly time frame, we want to spot a sniper entry, it is worth the efforts. Keep going.

Hourly time frame:

There you go! Daily is bearish, and retesting then the price is expected to fall.

15M time frame

For M15 and small time frames, engulfing indicator will not be effective or it can be used for a few pips.

Expect the price to pullback at some point that could take 1 - 2 days before the bearish continuation.

I will sell right from this level. Leave a comment below if you agree / disagree. I will see you later.

These indicators are Investment Castle products that are exclusively available in the MQL5 Market.

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