• The EUR/USD tests resistance in a 68 pip range
• Range resistance starts at a price of 1.0828
• breakouts are signaled beneath 1.0727
The EUR/USD has opened Thursday’s trading range bound, traveling between its R3 and S3 pictured above. At present, price is again working on traversing its 68 pip trading range after testing resistance in early trading at a price of 1.0896. If price continues to trade inside of the range, it opens the EUR/USD to move back towards key values of support. Currently, range support is found at the S3 found at 1.0828. A move back towards support would be considered significant, as prices would be trading back in the direction of the pair’s primary trend.
In the event that the EUR/USD fails to remain supported above today’s S4 at 1.0795, it opens up this morning’s price action to be interpreted as a retracement in a broader downtrend. Traders may begin looking for opportunities to trade fresh breakouts at this point, as the pair would be creating new weekly lows below S4. Traders, looking to target a 1X extension of todays 68 pip range on a breakout, may initially start looking for targets at a price of 1.0727. In the event that the current trend fails to continue, traders may begin looking for a reversal over the R4 at 1.0931. In this scenario, the current downtrend would be considered at least temporarily suspended. At this point active traders may consider concluding any open sell based positions, or changing their trading bias with the market conditions.