The EUR/USD chart is showing potential for a bullish reversal with two Gartley patterns forming. The most recent one has nearly completed, and the price is hovering around the D point at 1.094, a significant support zone. Additionally, a long-term uptrend line is providing extra support at this level. With the TDIGMA oscillator indicating overbought conditions and weakness in price momentum, a pullback or correction is likely, offering a solid buying opportunity.
Medium-Term Buy Strategy at Key Support
The price is approaching the D point of the completed Gartley pattern (in confirmed), typically a strong support level. Additionally, it's trading near a long-term support. These combined technical factors suggest a high-probability bullish reversal. The TDIGMA oscillator shows signs of weakness, further supporting the case for a bounce off the current support.
Entry: Buy near the D point, around 1.0940, after confirming reversal signals in lower timeframes (e.g., bullish candlestick patterns or momentum shifts). Target 1: 1.1090 (next resistance zone and Fibonacci retracement level). Target 2: 1.1190 (significant resistance and previous swing high). Target 3: 1.1260 (long-term resistance). Stop Loss: 1.0860 (below key support to manage risk). Risk-Reward Ratio: For Target 1: ~1:2 For Target 2: ~1:3 For Target 3: ~1:4, depending on entry and stop placement.
The confluence of the completed Gartley pattern, long-term support trendline, and overbought conditions on the TDIGMA oscillator make this a high-probability setup for a bullish reversal. However, it's crucial to monitor price action closely and wait for confirmation signals on lower timeframes before taking the trade.
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