USD On A Roll: Key Support Levels For The EUR/USD
Shain Vernier • 1 min read
Today’s session has been a great one for the USD across the majors. Marked by rallies against the EUR, CAD, and CHF, this morning’s slate of economic news has been good to the greenback.The U.S. session has given us a slew of import/export metrics, all of which beat expectations.
We had another Federal Reserve statistic, the Capacity Utilization Index for Sept. It came in slightly under expectations. Be aware of all FED metrics, as they will be viewed with increasing importance as we near December’s FOMC meeting.
EUR/USD Technical Outlook
The EUR/USD has been in a freefall during the overnight and early U.S. session. This negative price action may give us a shot to trade a few key support levels.
EUR/USD, Daily Chart
Over the last four sessions, price has broken under resistance, definitively to the bear. We have three support levels that are coming into play:
Support Level One: 78% Fibonacci Retracement at 1.1715.
Support Level Two: Round number of 1.1700.
Support Level Three: August spike low of 1.1622.
Bottom Line: We have discussed the importance of the August swing low at length over the past week. It looks as though we are headed for another test of this level. For today, I will be buying support using a 1:1 R/R trading plan:
Trade one: Long from 1.1715, stop loss at 1.1694 and take profit at 1.1734.
Trade two: Long from 1.1676, stop loss at 1.1649 and take profit at 1.1703.
As always, use appropriate leverage and trade smart!