Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
Single currency bulls are struggling at 1.3450-1.3500 strong resistant zone and they couldn’t find a way to break through it yet. It’s really amazing to see the battle between bulls and the bears here.
Last time they struggled at that level was on 31st of December as you can see in the chart below:
As it can be seen, price made a new high at around 1.3420 and rejected after that but bulls didn’t accepted the defeat so they tried again and made another high at around 1.3430 but in their second try bears had got better plan to defeat them so they accepted the defeat and bears made the price to fall more than 500pips.
Now we have another case of this battle as price made a high at 1.3455 on 14th Jan. and suddenly bears appeared and moved the bulls to 1.3240 but the battle still remains as bulls again made a new high at 1.3460 and rejected from there again.
So what’s next? Here I want to refer to a great article from our friend NickB at www.forex4noobs.com as he has posted a great visual article about resistant and support zones. You can see his article here.
Every Time price being rejected from a S/R level and wants to reach it again, it is an indication of a possible break as price is struggling to break it. Harmony of breaking strong S/R levels has shown that price needs strength and will hold below or above that level to gain more strength and then will break it. Look at this nice picture from Nick’s site:
This shows how bulls will gain strength before breaking an important level.
I want to mention an hourly trendline in EURUSD and I want to consider a long position after a break above this trendline:
And for short trades; Wait for the price to reach below 1.3300 and that places would be good to accept that in this case bear have defeated poor bulls again.
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