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.
Since bouncing from the weekly down trendline, 1.4570 has proven to be a tough resistance as it tried, and failed to breach the daily .618% fibonnacci retracement level of the 1.4940-1.3969 down swing on the daily timeframe. Currently, the .50% level is being tested, just above previous resistance and also just below the 4hr trendline. This trendline has little influence, and simply stands between the significant levels on the daily chart.
As a result, although breached to the downside, support continues to hold just below. A close back into the buy zone on the 4hr could signal buying opportunities, with a close watch at the 1.4570 resistance for follow-through. A consolidation range has been established on the smaller timeframes as 1.4460 continues to hold as support. If a break were to take place below this level, 1.4350/1.4400 represents a band of support from which there would be risk of a bullish breakout. In my opinion, only a breach of 1.4350 would be sufficient in providing downside momentum for a test of 1.4330 daily support. To the upside, the next major resistance lies at 1.4670s.
My general outlook is bullish, but await confirmation by way of a breach of the levels mentioned.
Thanks for reading….Happy trading!
Other useful blogs:
Forex Crunch: Eurusd July 5- Sliding in Range on Weak data, Greek Complications
The GeekKnows– Daily Commentary on Eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
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