Key Levels For the EUR/USD
Shain Vernier • 1 min read
In Wednesday’s pre-FOMC meeting recommendation, I outlined a Fibonacci short trade for the EUR/USD. After taking some initial heat, it performed well producing a 30 pip profit. Although the position was open a bit longer than expected, the trade was in the green for a majority of the duration.
Today has shown the USD to be grabbing some marketshare from the EUR, with the pair down about 10 pips for the session. Let’s take a look at some of the key levels for the EUR/USD.
Fibonacci retracements can be a powerful tool. Our 38% retracement level has withstood two sustained challenges.
EUR/USD, Daily Chart
The obvious “L” formation that I covered earlier in the week remains intact. Currently, we are trading with sideways action, posting a failed auction above yesterday’s high.
Key support and resistance levels:
Resistance(1): 38% retracement of current bear run, 1.1674
Resistance(2): 20 Day EMA, 1.1726
Resistance(3): Bollinger MP, 1.1735
Support(1): Thursday’s low, 1.1612
Support(2): Swing low, 1.1593
Overview: I expect to see sideways action for the remainder of the session. Another test of the 1.1674 level is possible, but the likely scenario is a close around the value area of 1.1635. With no market movers scheduled to be released for the rest of the day, rotation will be the rule.
Next week is going to give us some prime trading opportunities for the EUR/USD. The last five sessions have been extremely tight. It is probable that we see a directional move during the upcoming trading week.