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.
Eurjpy is once again backing away from a critical resistance level at 114.00. This seemingly impenetrable resistance is the result of a support that was breached on the weekly chart. As we know, once a support level is breached, it turns into resistance when retested. This area is labeled on the chart below. The weekly chart also boasts a prominent set of double bottoms, and, based on my experience, this is a powerful reversal pattern. Since we were at resistance, I took the opportunity to short towards 112.30, and 111.70(mid-range, and range support on daily chart) Looking at the daily chart below, a trading range is established with the weekly resistance forming the top of the range, and 111.50 as support. A look to the left will reveal the left shoulder of a potential inverse head and shoulders setup.
It is at this 111.50 area that I will be looking for long trading opportunities to set up, targeting 114.00. I will also be watching for a breakout at that level, but that is for another article! 🙂
Thanks for reading the article. Please share your own views as well. Have a great weekend!
You can also find my last post on the Eurusd here: http://winnersedgetrading.com/7405eurusdtechnical-analysis-trading-opportunities-trading-channel/
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