Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD (1.2450)
- Resistance Levels: 1.2500, 1.2660, 1.2910
- Support Levels: 1.24, 1.2250, 1.2141
My love affair being short on the euro has ended, for now. The EUR/USD broker higher. Please see the above MT 4 daily chart and notice the falling wedge formation, which has been completed with the formation of a solid bullish reversal pattern. I am talking about the morning star candlestick, then the subsequent move higher.
Near term resistance is lining up at the key 1.25 handle. A break above this level, with a daily close, will then challenge 1.2660. Should the euro reverse course again, then we need a break below the wedge top at 1.24. This is also a former resistance level and another key technical level. If this happens then the EUR/USD will challenge 1.2250 and lower.
My initial trading strategy did very well as I sold the short position at 1.2712. The fundamental outlook supported my patience, along with midterm bearish chart patterns. This is why I combine technical and fundamental analysis. My strategy, for now, is to stand aside. I prefer to wait for another strong opportunity to present itself before jumping back into this market.
Trading strategies are educational and do not represent trade advice. Please do your own technical analysis to support my own conclusions before placing a trade.
