EURUSD → Drop to 1.05? or Blast to 1.10? Lets Make it Clear.EURUSD is pushing toward the resistance zone which gives the bulls some tingly senses to take profit and run the price back to the downside. Will the Dollar show strength this week and keep EURUSD from breaking resistance?
How do we trade this?
The price is currently in a trading range between 1.05000 and 1.10000 and we're getting close to the resistance zone where the Weekly 200EMA resides. If you're not already in a trade, it's worth waiting to see what happens at the resistance zone. A bear signal bar closing on or near its low below the resistance line is a good indicator that the price will fail to rise above again and would be a reasonable short. Stop loss above the resistance zone top and take profit just above the Support Zone around 1.05000. The RSI is near 70.00, a weak indicator on its own, but supports the rest of the analysis for a soon-to-come short.
If the price finds its way above the resistance lines and closes a bull candle on or near its high, it would be reasonable to long with a protective stop just below the resistance zone. Target prices as high as 1.12500.
Key Takeaways
1. Trading Range after Bull Run, Bias to Long.
2. Near the Resistance Zone, Look for a Reversal Signal.
3. If Shorting, Watch the 200EMA for Support.
4. The Dollar Index may fall more, wait for the bottom.
5. RSI near 70.00, Bias to Short.
You are solely responsible for your trades, trade at your own risk!
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