Today I'm going to give you a drawing on the EUR/USD one hour chart. Just things to have a look for if you're looking at day trading this in the future. We have got a lot of noise, we are trading in some ranges. So I wanted to prepare some areas in which you could look to either trade around or take into account before taking any trades.
The orange marked areas, the weak resistance and weak support is sitting on the chart. While you may look at this and say that they look strong, look how many times this bounced off of that area, well, the reason I've actually noted it is weak is because it has already bounced off of them both many times. You can see the week support, we've tested it three times and usually not much more testing needs to be done before it's broken. Underneath that we are followed by the weak demand just below that support. We've also tested that area already. We managed to break it, but it was a bit of a liquidity grab then a push higher. So we kind of absorbed all the outstanding orders that were left there, I'm not sure if there will be anymore if price manages to get down to that level.
When looking at it as a blind chart I'm favoring to the downside, maybe down to that lower stronger demand but We'll see how it plays out. I think this channel we're currently in is going to break out soon.
Let me know what your thinking on the EUR/USD. It has been very flat and very evenly priced around this $1.10. I am interested to see your view.