EURUSD ends February with a bullish engulfing pattern
28 February 2023
The EURUSD experienced a rough February, especially in its first few days, with only a few bullish candles appearing on the charts. However, yesterday's candle may have the potential to change the game.
EURUSD created a bullish engulfing pattern on the daily chart (highlighted in yellow), which often signals a buy opportunity. This pattern is further supported by the location where it formed - at the end of a wedge pattern (highlighted in black), which is typically a continuation pattern that suggests a move to the upside. Furthermore, we are currently trading above the 1.05 support level (highlighted in orange), which has proven to be significant in November and December of last year.
From a technical standpoint, as long as we remain above the 1.05 support level, there is a strong signal to go long. A drop below this area and a close below 1.05 would invalidate the buy signal, but the likelihood of that happening is currently low.