EURUSD - Trapped in a Big 500 Pips Range. What's Next??
Good evening Traders,
Like I promised, here is my short EURUSD -0.04% daily analysis.
You can see that EURUSD -0.04% is in an intact uptrend. A simple definition of an uptrend is when the market is doing higher highs and higher lows.
Now, I identified for you 2 very important things.
Let's start with the first observation.
1.) First of all the EURUSD -0.04% is currently retesting the resistance now acting as the new support area of around 1.2074 (09/08/17 peak). The current pullback is a normal behavior. Markets tend to retest the last broken highs before they start a new rally.
2.) The second very important observation is the 200 day moving average. The last time the EURUSD -0.04% tested the 200 moving day average was at 05/11/17. You can see that on that date the EURUSD -0.04% retested in a pullback the 200 day moving average bevor a massive rally occurred. First of all, I need to mention to you that I am not expecting a similar rally like we had a year ago. However, I am expecting a pullback to the upside in the EURUSD -0.04% to retest the broken trendline or to at least stay in the range between 1.2557-1.20736.
Recap my 2 possibilities:
- First one is the black one (drawn on the chart) We could see a pullback higher without making a new low below 1.2020.
- Or the second one (dotted line) it makes another new marginal low below 1.2020 and starts a pullback higher.
This view will be invalid once EURUSD -0.04% closes with a daily close below the 200 moving day average.
I hope you enjoyed this view.
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view presented is not any trading recommendation, just personal view.
Like I promised, here is my short EURUSD -0.04% daily analysis.
You can see that EURUSD -0.04% is in an intact uptrend. A simple definition of an uptrend is when the market is doing higher highs and higher lows.
Now, I identified for you 2 very important things.
Let's start with the first observation.
1.) First of all the EURUSD -0.04% is currently retesting the resistance now acting as the new support area of around 1.2074 (09/08/17 peak). The current pullback is a normal behavior. Markets tend to retest the last broken highs before they start a new rally.
2.) The second very important observation is the 200 day moving average. The last time the EURUSD -0.04% tested the 200 moving day average was at 05/11/17. You can see that on that date the EURUSD -0.04% retested in a pullback the 200 day moving average bevor a massive rally occurred. First of all, I need to mention to you that I am not expecting a similar rally like we had a year ago. However, I am expecting a pullback to the upside in the EURUSD -0.04% to retest the broken trendline or to at least stay in the range between 1.2557-1.20736.
Recap my 2 possibilities:
- First one is the black one (drawn on the chart) We could see a pullback higher without making a new low below 1.2020.
- Or the second one (dotted line) it makes another new marginal low below 1.2020 and starts a pullback higher.
This view will be invalid once EURUSD -0.04% closes with a daily close below the 200 moving day average.
I hope you enjoyed this view.
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view presented is not any trading recommendation, just personal view.
Comment:
We need to be very careful with the EURUSD at this stage. Keep in mind today is the FOMC can be a move against the dollar lets see.
Comment:
Update
