Key Observation: - EUR/USD has initiated an upward trend, marked by higher highs and higher lows. - However, a short-term pullback is anticipated before the price reaches a strong support level, after which the upward trend is expected to resume.
Price Action Analysis: - Pullback Prediction: Short-term bearish price action suggests a retracement towards a strong support level. - Support Level: Identify and monitor the key support level for potential bullish reversal signals. - Reversal Signal: Watch for bullish candlestick patterns, such as bullish engulfing or hammer, at the support level to confirm the continuation of the uptrend.
Conclusion: Although EUR/USD is in the early stages of an uptrend, a short-term decline towards a strong support level is expected before the trend continues upward. Traders should look for bullish signals at the support level for potential LONG positions in line with the prevailing trend.