Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD (1.1634)
Strategy: Stand Aside
- Resistance Levels: 1.1870, 1.2040, 1.2245
- Support Levels: 1.1678, 1.16, 1.1560
Even after yesterday’s drop against the Dollar, after the SNB announcement, it looks like the euro is forming a bottom against the U.S. Dollar. Please see the below daily MT 4 chart. Looking at the RSI indicator, it is turning positive, this indicates the EUR/USD is losing downside momentum.
There is short term resistance lining up at 1.1870. This is the high touched on January 12. A daily close above this level will open the doors to challenge the technical support located at 1.2040. Should the support at 1.1778 break, on a daily closing basis, then the euro would continue it’s decent crashing through a key pivot located at 1.16.
Let’s turn our attention to the below 4 hour chart. Here we can better see a bottom forming near the pivot at 1.16. Should 1.16 hold, like we hope, then the bounce higher will be corrective only, in line with my long term outlook. This will present me an opportunity with another short euro trade. For right now, I am standing aside waiting on this opportunity to unfold.
As always, trading strategies are educational in nature and do not constitute trade advice. Always perform your own technical analysis to support my own conclusions before placing any trade
