End Of Week Levels For The EUR/USD
Shain Vernier • 1 min read
The U.S. forex session has been dominated by the Greenback. Big gains against the Euro and Swiss franc have highlighted the action. A near triple-digit plunge in the EUR/USD has brought several technical support levels into view. If the current sentiment continues, then a few counter-trend trade setups will come into play by Friday?s closing bell.
Today?s post-FED session has brought an abundance of participation to the currency markets. Let?s take a look at the levels facing the EUR/USD going into the Friday session.
It has been a 70 pip bearish rout in the EUR/USD. With prolonged FED tightening now on the table, it appears that traders are liking the intermediate-term prospects of the Greenback vs the Euro.
Here are the support levels to watch in the coming hours:
- Support(1): Bollinger MP, 1.1666
- Support(2): 62% Current Wave Retracement, 1.1636
- Support(3): Daily SMA, 1.1622
Bottom Line: At press time, the EUR/USD is pushing session lows at 1.1663. This action is testing the Bollinger MP and threatening to extend losses. If the sell-off is extended, then a long trade setup will come into play in the coming U.S. overnight session.
For the remainder of the week, I will have buys from 1.1626 queued up and ready to go. With an initial stop at 1.1594, this trade produces 32 pips using a standard 1:1 risk vs reward management plan.
This is a counter-trend trade, so keep the leverage in check. Buyers are likely to dig in ahead of the 1.1600 handle and the support levels on the daily chart are an added bonus. With a bit of luck, this trade will go live shortly before the upcoming European session kicks off.