EURUSD: 4H Fractal reveals a Rebound is very probable.

The pair has been consolidating both on 4H (RSI = 39.769, MACD = 0.000, Highs/Lows = 0.0000) within 1.09915 - 1.1075 and on 1D (RSI = 43.288, MACD = 0.000, Highs/Lows = 0.000) within a wider 1.0926 - 1.1110 range.

At the moment the 1.0926 Support on 1D appears to be holding and being within the wider long term pattern of the 1W Channel Down we looked for similarities in previous Double Bottom sequences within the pattern. A fractal that stands out was earlier this year in May/ June and so far the candle action both on tops and bottom has been similar. Even the MA50 and MA200 periods are charting in the same way.

That pattern eventually broke the Resistance and made a new High above the previous Lower High. We are expecting a similar price action and have set a medium term TP at 1.11600.




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