Forex Trading Library

EURUSD – Holds within corrective channel formation

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Monthly: Trading within a bearish channel formation. Trend line resistance is seen at 1.2550. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) attracted sellers. We trade to the lowest level in 10 months. This area has acted as resistance in 2016 and 2017 (1.1714 and 1.1616) and now acts as support. A doji style candle (little nett changed) was seen in June

Weekly: Posted seven weeks of mixed and volatile trading. There is scope to form a bearish Head and Shoulders pattern. Trend line resistance is located at 1.2026. The 50% pullback level from 1.2556-1.1513) is located at 1.2034. Bespoke resistance is located at 1.1890. A Demark 13 (exhaustion) has been posted on this timeframe.

Daily: Levels close to the 261.8% extension level of 1.1490 (from 1.2557-1.2149) have found buyers. Bullish divergence can be seen on the daily chart (chart makes the same low while the oscillator makes a higher low), often an indication that the selloff is stalling.  Price action is mixed and volatile, common in corrective formations. The 38.2% pullback level from the last selloff is located at 1.1907, close to the aforementioned bespoke resistance. This is our target zone

Intraday (2-hours): Trading within a corrective channel formation. Levels close to the 61.8% Fibonacci level of 1.1616 (from 1.1508-1.1790) found buyers. Bespoke support is located at 1.1650. With this being close to a previous swing low, this is our preferred long entry.

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