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.
I am a technical trader, as I believe the fundamentals eventually play themselves out in the market. However, even I cannot ignore the slew of bad news coming out of the Eurozone, and it’s glaringly obvious on the charts that they are not being ignored. The Eurusd plunged through a major weekly support line (See chart below) during the early London session, and as I am writing this article it seems that we might be in for even more downside action.
1.3100 represents intense resistance, and we are seeing all attempts at a rally being sold off. A successful breach of current support at 1.2950s could open the way for a test of 1.2800s, where we can see array of choppy wicks. Persons looking for trading opportunities could look out for retests of the 1.3075/1.3100 for reversal bars to cautiously short. The expression ‘over-extended’ might be used in this case, but as I prefer to pay more attention to price action and momentum rather than attempt a buy in this area. In my opinion, those two factors have been the theme of the overall market as significant resistance and support boundaries are being ripped through with scant regard for top/bottom pickers.
Thanks for reading. As usual, trade safely, and may your efforts be awarded with success! 🙂
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