EUR/USD Technical View

After a failed attempt to push higher on Monday and Tuesday, Euro didn’t manage to stay above the 1.3600 level and retested May 10^th support at 1.3459 only to bounce back above 1.3500. As we can see on the weekly charts the price action was undecided and we stayed inside the previous weeks trading range, the only clear thing established was a reinforcement of the 1.3630 and 1.3459 areas as a resistance and support zones respectively. A break out above or bellow the mentioned levels would certainly be in the cards on the following week, getting bellow 1.3459 would open up December 3^rd high of 1.3364 as a target followed in closely by the 1.3300 round number and January 7^th high. If Euro is going to gather some strength in the next couple of days we might see another push towards the 1.3610/30 resistance area and once there we can see the 1.3680 YTD becoming a target for longs. We will closely monitor the situation in the following days also on the lower timeframes looking for possible signs of strength or weakness for both longs and shorts.


Resistance Levels

• 1.4532 – March 2005 High
• 1.3668 – December 2004 High
• 1.3630 – May 7^th High
• 1.3523 – April 16^th Low

Support Levels

• 1.3459 – May 10^th/11th Lows
• 1.3365 – December 3^rd High
• 1.3300 – January 7^th High
• 1.3260 – February 27^th High (more…)

EUR/USD

Euro slipped under 1.3500 in yesterdays trading session but only got as low as 1.3475, 15 points above the support levels established on May 10^th at 1.3459. Getting under the 1.3459 support might trigger more downside pressure on the pair which will open up December 3^rd high of 1.3364 as a target and once there we will analyze the continuation potential. If on the other hand euro doesn’t manage to get bellow the current trading levels, and if we consider the slightly oversold conditions on the 4hr and daily charts, we will have to pay attention to future resistance as the pair might reverse the move from the last couple of days. The closest resistance is the 1.3523/50 zone, once above it May 16^th high of 1.3610 and May 7^th high of 1.3630 are the intermediary resistance zones until the 1.3668/80 YTD high.


Resistance Levels

• 1.4532 – March 2005 High
• 1.3668 – December 2004 High
• 1.3630 – May 7^th High
• 1.3523 – April 16^th Low

Support Levels

• 1.3459 – May 10^th/11th Lows
• 1.3365 – December 3^rd High
• 1.3300 – January 7^th High
• 1.3260 – February 27^th High

(more…)

EUR/USD

Euro formed an outside bar yesterday, taking out both of Tuesdays high and low, it didn’t manage to reach the 1.3630 level on the high side but it got under the 1.3523 support only to stop at the 1.3500 round number. Once again we are trading around the 1.3523/1.3550 zone and we have to wait for price to break through either side in order to have a much clearer view of things to follow. On the down side we now have yesterdays low of 1.3500 as closest support followed by May 10^th/11^th lows of 1.3459, if these two levels fail to hold the pair next strong support is December 3^rd high of 1.3365. If the current levels the price is at hold and we get another push north first targets would be 1.3610 and May 7^th high of 1.3630, if those are cleared we can expect another try at the 1.3668/80 YTD highs.


Resistance Levels

• 1.4532 – March 2005 High
• 1.3668 – December 2004 High
• 1.3630 – May 7^th High

Support Levels

• 1.3523 – April 16^th Low
• 1.3459 – May 10^th/11th Lows
• 1.3365 – December 3^rd High
• 1.3300 – January 7^th High
• 1.3260 – February 27^th High

(more…)

Our third FX Instructor video demonstrates the use of our FXI Divergence Detector indicator during a Live Trading Room session. The indicator is designed to visually indicate divergence and hidden divergence.

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Stay tuned for future video releases by FX Instructor!

EUR/USD
Euro showed some clear signs of weakness against the US dollar this week, as did the other majors. With an undecided price action move on Monday, euro fell sharply on Tuesday consolidated under the 1.3550 level on Wednesday only to continue its south journey Thursday making a low of 1.3560. Thursday May 10^th low of 1.3560 was also the low for the next day when the US dollar strength just disappeared and EurUsd retraced close to the 1.3523/50 resistance area. If the down move is to continue price needs to break bellow the 1.3560 level and start heading towards December 3^rd high of 1.3365 where the next support level is, bellow that we can see January 7^th high of 1.3300 and February 27^th high of 1.3260 as strong support which might revert the down movement. If on the other hand Friday’s bounce of the lows is not just a retracement of the euro fall, but it proves to be the beginning of another push north we have our sights set on 1.3630 as first target and above that on the YTD high of 1.3680.



Resistance Levels

• 1.4532 – March 2005 High
• 1.3668 – December 2004 High
• 1.3630 – May 7^th High
• 1.3523 – April 16^th Low

Support Levels

• 1.3459 – May 10^th/11th Lows
• 1.3365 – December 3^rd High
• 1.3300 – January 7^th High
• 1.3260 – February 27^th High

(more…)

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EUR/USD

Euro, again, traded inside a very small trading range yesterday and so far today it stayed pretty much in the same range, not being able to get bellow Tuesday’s low of 1.3510 the down move has clearly lost some of its power. Like we said in our previous commentaries not clearing the current levels and not breaking the support at 1.3523/50 might signal a potential reversal to a more bullish development; if that is the case we have to pay attention to May 7^th high of 1.3630 as first resistance followed in closely by the 1.3668 level which has been the main resistance against price making new historic highs. If on the other hand price slips bellow the current support zone and takes out May 8^th low of 1.3510 we have the March 2005 high of 1.3483 as a possible target, then March 21^st high of 1.3410 and December 3^rd high of 1.3365 as significant support zones, as price gets to each of these levels we will reassess the situation and act accordingly.


(more…)

EUR/USD

Euro broke the 1.3590 level we mentioned yesterday and we had an above average trading day yesterday with price getting as low as 1.3510. If the pair manages to keep what appears to be a down momentum we can see lower levels in the coming days but if we look at the daily and 4hours charts we can see that it has to clear some important support zones in order to get any lower. First it has to get bellow the 1.3523/50, yesterday it got a little bit lower but it lacked the strength to close near 1.3500; so if EurUsd gets bellow current levels we can see March’s 2005 high of 1.3483 becoming a plausible target, after that we have the 1.3410 high made on March 21^st and December 3^rd 1.3365 as support zones which could slow the potential down move or even send the pair higher up. Not clearing the current levels on a down move might signal a potential reversal for another push towards and above 1.3668, before the pair gets there it has May 7^th high of 1.3630 as intermediary resistance.

(more…)

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If there is one thing that a trader would want to know for certain, it would be to catch the bottom or top of a trend.

But simple as it sounds, it is easier said than done.

Knowing that a certain price wave is completed, or is just a retracement in the larger trend, becomes more of an art than a science.

In such situations, using multiple sources of confirmation helps to avoid the potential false signals, and preserve our capital for only those situations that provide us with the most favorable risk to reward scenarios. Keeping that in mind, we will use two very different indicators – the ADX (Average Directional Movement Index) and the PSAR (Parabolic Stop & Reverse) - to form a system which should help us to trade as close to the top / bottom as possible.

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Our third FX Instructor video demonstrates the use of our custom FXI Pivots indicator during a Live Trading Room session. The indicator is designed to visually indicate support, resistance, and momentum lines.

Be sure to subscribe to our YouTube channel to be notified of any future releases.

Stay tuned for future video releases by FX Instructor!