Hourly cycle predictability on EUR/USD In view of price action on the daily time frame, EUR/USD has demonstrated a lower high with a rally back into the daily time-frame's falling trend line with the possibility of heading into ~1.2885 where the recent daily high sits. A violation of this high, though unlikely, could see a change in trend in EUR/USD. Until then, as indicated by price action behaviour, advantage of a potential rise back to 1.2885 can be taken by looking for a long predictable intraday opportunity on the hourly time frame. Previous retests at the bottom of the rising trend channel on the hourly timeframe occur alongside previous levels and, repeatedly, the 0.618 Fibonacci level. Furthermore the 50 ema could catch up in the buyzone to a confluence of these factors foreshadowing a move to the upside.
entry - above low test/bullish reversal bar at bottom of hourly trend channel
stop loss - below trend channel, 50 ema or low test/bullish reversal bar at bottom of hourly trend channel
target - top of hourly trend channel
(be cautious of price action reaction to falling trend line of daily time frame (in yellow)), and resistance
at 1.2765 on the hourly timeframe
