Try Innovative Etoro Social Trading Platform

Tuesday, September 8, 2015

eurusd Trapped Between Support and Resistance



The most popular Forex pair eur/usd is currently trapped by intra day support and resistance levels. The pair has been moving down in waves for around two weeks. It is being supported by 200 sma and ema on 4 hour chart (acts as support) and is trapped by 200 sma and ema on hourly chart. This situation won’t last long and price will eventually explode through one of the technical levels up or down. Bearish picture is favored as price rallied to resistance of 1.1230 today and formed a reversal candle (bearish pin) on the hourly chart. 

Price sort of holds above 1.1175 level, which was resistance yesterday and may act as support today. You may remember that price broke the level upwards today after a bullish triangle pattern on 1 hour and 15 minutes formed. However, the breakout occurred during Asian session and these kind of breakouts do not usually last for a long time. If the above mentioned support is broken, next area comes at 1.1100-1.1080. That should hold at least for today, but not sure if it is still there by the end of the week. Euro is also falling against British Pound, so the pressure for eur/usd to go downwards increases dramatically. 

If you want to see and experience what real investing in financial markets such as Forex, stocks and commodities is all about I recommend trying innovative social investment platform of Etoro. Initial deposits are as low as a few hundred bucks. The best dealer I have heard of so far!
                                                 CLICK HERE TO TESTTHEM



No comments:

Post a Comment