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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