EUR/USD Extends Gains: Fibonacci Trading Plan
The early trading session continues to be a difficult one for the USD. Values against the majors are reflecting the bearish sentiment facing the greenback’s market dynamic. The result has been an extension of last week’s trend bullish trend for the EUR/USD.
EUR/USD Technicals
In a Friday update, I outlined the key topside resistance levels for the EUR/USD. Price has continued to grind up sellers, posting a proximity test of the 2017 high (1.2091).
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As of this writing, price is rotating in the neighborhood of 1.2050. Round numbers are attracting participation, running price toward the 1.2100 handle. The number of relevant support and resistance levels is small, as the bullish break has driven price well above support.
Here are a few areas to watch for the remainder of the U.S. session:
Resistance(1): High of 2017, 1.2091
Resistance(2): Psyche level, 1.2100
Support(1): 38% of current bull run, 1.1980
Support(2): December’s high, 1.1958
Bottom Line: 2017’s high at 1.2091 has proven to be valid resistance, as price rallied to this area and sold off quickly. I fully expect this level and 1.2100 to be tested in the coming sessions.
The 38% Fibonacci retracement level of the current bull run is premium trade location to the long. Buys from 1.1985 with an initial stop beneath 1.1950 yield a 35 pip return on a 1:1 R/R trade management plan. With a bit of luck, this trade will become active during the U.S. overnight session.
As always, trade smart and for tomorrow!
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