EURUSD: Epic Struggle vs Bulls & Bears

Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.

The Eurusd rally throughout the last trading week caught many off guard as it bounced from 1.2890 support that extends for years. A scroll to the left of the daily chart reveals price reaction to it all the way back to 2003. To be honest, I only expected the bounce to retest the broken support at the 1.3100 area. Instead, the bullish momentum propelled the pair back to the top of the trading range at 1.3450. The daily chart below shows price stalling at that level. The question on many traders’ minds is whether this will be the turning point for the bears to regain control. However, though the pair is trading just below this critical resistance zone, I have learned never to make any assumptions in this market. Last week’s rally was proof enough that the market can do whatever it wants, when it’s least expected. To the upside, additional resistance lies at the underside of the broken up trendline at 1.3630. Immediately below current levels, support will come from the newly drawn down trendline that was breached on the way up. This is at the 1.3300 level. From there, 1.3180 represents mid-range support, followed by the now-infamous 1.2890 support. 1.2650 is a major support that the bears will likely target, in the event of 1.2890 succumbing to bearish pressure.

 In addition to virtually every other trader out there, I will be watching the Eurusd with interest. Friday’s close saw the pair stubbornly refusing to give up any significant gains, so the price action early this trading week will give clues regarding further direction.

Thanks for reading, and I would really love to hear your own views on Eurusd. Enjoy the rest of your weekend! 🙂

Interested in Buy And Sell Zones?  This is my last post on the topic: http://winnersedgetrading.com/trading-buy-and-sell-zones-resistance-and-support-trading-reversals/

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  • Hi Gspajon. I appreciate your comment. 1.3350 represents the top of a trading range for me, so as long as price remains below, the overall bias is bearish in my opinion too. However, this is a critical level for breakout in either direction. Thanks, and have a great trading week! 🙂

  • Thanks for the comment, Rania. I am watching the 1.3450 area too Any close above and there’s a strong possibility of further upside. Thanks again…Happy trading! 🙂

  • You’re welcome, Robert..Thanks for reading! 🙂

  • Gspajon

    While last week’s rally might look bullish, I am holding to the opinion that this pair is looking more and more bearish. A check of the weekly and monthly charts shows price is struggling to maintain itself above 1.3430 area and each time it slips it makes a fresh low. The monthly charts shows a renewed bearish sentiment which appears to want to dominate the picture in the medium to longer term. This strong bullish rally appears to be only a blip on a larger bearish framework.

  • Gspajon

    While last week’s rally might look bullish, I am holding to the opinion that this pair is looking more and more bearish. A check of the weekly and monthly charts shows price is struggling to maintain itself above 1.3430 area and each time it slips it makes a fresh low. The monthly charts shows a renewed bearish sentiment which appears to want to dominate the picture in the medium to longer term. This strong bullish rally appears to be only a blip on a larger bearish framework.

  • Rania Wagdy

    Totally agree with you , now for me i’m still prefer bearish view unless i see weekly close above 1.3400 first , for near term i’m watching 1.3500 Daily close above we will see 1.3730 next , on the other hand any close below 1.3320 would give us bears new hope and we will expect 1.3180 next then 1.3070 and 1.2870,
    Thank you

  • Rania Wagdy

    Totally agree with you , now for me i’m still prefer bearish view unless i see weekly close above 1.3400 first , for near term i’m watching 1.3500 Daily close above we will see 1.3730 next , on the other hand any close below 1.3320 would give us bears new hope and we will expect 1.3180 next then 1.3070 and 1.2870,
    Thank you

  • Thank you Sophia!

  • Thank you Sophia!