Support & Resistance Levels – Stay Long Or Reverse EUR/USD Positions? - Forex News by FX Leaders

Support & Resistance Levels – Stay Long Or Reverse EUR/USD Positions?

Posted Monday, August 7, 2017 by
Skerdian Meta • 2 min read

Like the Japanese Yen, the Euro has gained considerable ground against the USD. The trend has been up and it has been pretty strong, but now it looks like things are changing.

Last Friday´s bearish candlestick looks very bearish; it is about 100 pips long and including the shadows, it stretches to around 160 pips.

Technically, that changes the whole picture for EUR/USD. This pair has gone too far up this year and last Friday´s candlestick is a signal that a reverse or a decent pullback might be underway, so let´s have a look at the levels which might be obstacles on the way down, or up for that matter, because the reverse hasn´t formed properly yet.

EUR/USD

Support  Resistance

1 – 1.1770-80 (Medium – 50 SMA on H4 chart)                1 – 1.1800-10 (Medium – Big round number)

2 – 1.1750 (Mild – Previous resistance)                             2 – 1.1840-50 (Strong – Previous resistance)

3 – 1.1720-30 (Medium – Support on Friday)                    3 – 1.1880 (Medium – Previous resistance)

5 – 1.1700-10 (Strong – Long Term resistance)              4 – 1.19 (Strong – The high so far)

I hope to get a chance higher up to enter EUR/USD on the short side 

These are the support and resistance levels for EUR/USD. The previous H4 candlestick formed a doji which means that we might be headed down, according to the candlestick formation trading strategy. So, going short looks like a reasonable strategy at the moment.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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