This chart of EUR/USD on the 1-hour timeframe highlights the following:
1. Resistance Zone (1.0460–1.0470):
The price is testing a resistance level (marked with the red line). Historically, this zone has prevented further upward movement, and there is a possibility of rejection unless there’s strong bullish momentum.
2. Support Zone (1.0380–1.0400):
The green box below indicates a strong support level. If the price reverses, this is likely the area it might test again.
3. Possible Breakout Scenario:
The blue arrow suggests a potential breakout above the resistance level. If this occurs, the price may begin a bullish trend targeting higher levels.
4. Supertrend Indicator:
The chart shows the supertrend currently in an uptrend. If the price holds above the supertrend line, the bullish bias remains intact. However, a reversal could shift it into a downtrend.
My Ideas:
Bullish Case: Wait for a confirmed breakout above the resistance level (with strong candle closes above 1.0470) before entering a long position. Target areas could be 1.0500 or higher.
Bearish Case: If the price gets rejected at resistance, consider entering a short position targeting the support zone around 1.0400.
Risk Management: Use stop-loss orders to protect against false breakouts or rapid reversals. Keep SL tight, either below the support or resistance, depending on your trade direction.