12.02.202015:59 Forex Analysis & Reviews: EUR/USD. February 12. Strong support for the euro. Getting ready for the purchases of the pair?

EUR/USD – 4H.

Good day, dear traders!

A few weeks ago, I gave a long-term trading idea about selling the euro currency on the signal of a rebound from the upper line of the downward trend corridor. A little later, there was a second sell signal in the form of fixing the pair's rate under the upward trend line. Today, I am happy to report that the target level is almost fulfilled. At the moment, the euro/dollar pair has performed a fall to the low level of October 1, so it is possible to rebound from it, a reversal in favor of the European currency and some growth. Given the fact that the initial target level of 1.0850 remains no more than 50 points, I consider it appropriate to close long-term sales near this low level. And almost immediately, we have a new trading idea associated with the level of 1.0890. If a rebound from it is completed, which is very likely, it will be interpreted as a buy signal with targets near the upper line of the downtrend corridor, which continues to determine the mood of traders as "bearish". Otherwise, we will close below the level of 1.0890 with a further drop in the quotes in the direction of the level of 1.0850, and possibly even lower. In any case, a new signal can be received today or tomorrow. Also, in the event of a rebound, traders will get a "double bottom" graphic pattern, which is a strong signal to buy.

Forecast for EUR/USD and trading recommendations:

The new trading idea is to buy the euro with an approximate target around the level of 1.1100 (the upper line of the trend area) when rebounding from the level of 1.0890. The rebound can be said to have already been completed, so you can already try to buy the euro with a Stop Loss at 1.0890. I recommend selling the pair if you pass the low level of 1.0890 for bear traders.