EUR/USD Analysis
I wrote last Thursday that bulls seemed to have the advantage, with buying continuing below $1.1300. I thought that a bullish bounce at the new support level of $1.1315 could produce a good long trade entry signal. I also thought a short trade below $1.1315 could be good but only on a failed retest following the breakdown.
This was a good call insofar as it prevented entry into a failed short trade. I was right about seeing the $1.1315 area as supportive as the main action of the past few days was buying below that level pushing the price up.
We have seen bears, helped by recent strength in the US Dollar, continue to push the price down and compress the price as new lower resistance levels are printed. However, we just get a compression because the support beginning below $1.1300 at about $1.1261 continues to look very firm and make its presence felt. So, we have a close fight between bulls and bears and it is hard to tell who is going to win over the medium term. This is helped by the fact that the EUR is relatively strong just like the USD.
I see the best strategy for today in this currency pair as scalping reversals at key levels, and I suspect the best potential would be a long from $1.1261 or $1.1250. It will be important to monitor any open trade on a short timeframe and to be quite quick to take profits, and to use tight stops.
I wrote last Thursday that bulls seemed to have the advantage, with buying continuing below $1.1300. I thought that a bullish bounce at the new support level of $1.1315 could produce a good long trade entry signal. I also thought a short trade below $1.1315 could be good but only on a failed retest following the breakdown.
This was a good call insofar as it prevented entry into a failed short trade. I was right about seeing the $1.1315 area as supportive as the main action of the past few days was buying below that level pushing the price up.
We have seen bears, helped by recent strength in the US Dollar, continue to push the price down and compress the price as new lower resistance levels are printed. However, we just get a compression because the support beginning below $1.1300 at about $1.1261 continues to look very firm and make its presence felt. So, we have a close fight between bulls and bears and it is hard to tell who is going to win over the medium term. This is helped by the fact that the EUR is relatively strong just like the USD.
I see the best strategy for today in this currency pair as scalping reversals at key levels, and I suspect the best potential would be a long from $1.1261 or $1.1250. It will be important to monitor any open trade on a short timeframe and to be quite quick to take profits, and to use tight stops.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.