Good morning for the second time this week. It is a wonderful morning today again, particularly when you wake up with a winning forex signal/trade. Last night we opened a sell forex signal in EUR/USD around 1.0640, which reached the take profit target this morning, so it´s a good start to the day.
Anyhow, it´s a new day which will bring new trading opportunities. Therefore, let´s have a quick look at the technical levels in EUR/USD to see the support/resistance levels which we can trade against.
An ascending wedge is being formed in EUR/USD H1 chart.
EUR/USD – This forex pair has been hanging around these levels for three days now, so it has formed a nice range where we can find 1 or 2 trading opportunities.
The first and foremost level we can trade off is the 1.0640-50 resistance level, where the price is right now and where we sold this forex pair twice in the last two trading days. With the 100 simple moving average (100 SMA) up here in the H1 EUR/USD chart, I'm itching to open another sell forex signal up here.
Ok, I just pulled the trigger on that one. We sold EUR/USD just below the 100 SMA as shown in the forex chart below at 1.0648. Above here, the next resistance level comes at the round number of 1.07, followed by 1.0730, which is where the 50 SMA is located on the H4 chart. I don´t think we´ll see the price reach beyond these resistance levels today unless there is a dramatic event.
Looking at the bottom side, the closest support level is 1.0615-20, since the 50 SMA in the H1 chart lies there. At 1.06 comes the ascending trendline of that blue wedge we can see on the same forex chart. The recent swing low at 1.0550-60 is another decent support level, but the ultimate levels are 1.0520 and 1.0450-60, which again, judging by the price action in the last few days, I don´t think we can see a break today.