EUR/USD - Stuck Between Daily Support/Resistance Zones

in LeoFinance3 years ago


Direct from the desk of Dane Williams,
exclusive to leofinance.io




Key Takeaways:

  • EUR/USD stuck between daily support/resistance zones.
  • Somewhat rangebound on the daily.
  • No bias right now as price is stuck rangebound in no-man's-land.




EUR/USD Technical Analysis

While EUR/USD is the most popular forex currency pair, the fact it's been stuck between daily support/resistance zones has meant I haven't had a chance to feature it on the LeoFinance blog for a number of months.

Being a quiet Sunday with not much happening, what better time than to give a little refresher as to where the market is at.

So the last time that we spoke about the pair, we had EUR/USD breaking back down through daily support.

If you go back and take a look at that blog and then compare the zone on the updated daily chart below, you'll unfortunately see that the price action going through the zone was choppy.

EUR/USD Daily:
EUR/USD Daily

Not ideal for those of us trading my simple forex support/resistance trading strategy and shorting as price went through.

But forward we march and you can see that after price finally did crack through the 1.2040 daily zone, the bears did take control and have been ever since.

You can see that price has had a little uptick from that short term bottom and I'd be tempted to actually draw a daily zone in there simply because of how clean that last V-shaped bounce looks.

But not yet.

The price action from August to November 2020 that you can see to the left on that chart, is just too choppy for me to have any conviction on a zone in there.

So for now I remain flat EUR/USD, waiting until price returns back to retest the 1.2040 daily zone as resistance before getting short.

That's me thinking out loud on a Sunday, so enjoy the rest of your weekend and let's hit the ground running tomorrow.

Best of probabilities to you.




Data to Watch Next Week:

  • Fed Chair Powell Speaks (USD)
  • CPI m/m (USD)
  • Core CPI m/m (USD)
  • Fed Chair Powell Speaks... again (USD)
  • Core Retail Sales m/m (USD)
  • Retail Sales m/m (USD)




Why not leave a comment and share a chart of your own in the comments section below? All comments that add something to the discussion will be upvoted.

This daily market analysis blog is exclusive to leofinance.io.

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Yes, in fact I am also waiting to see if the price reaches that 11990 - 1.2040 zone again. But I am observing that if the price fails to break that zone it generates a bounce to the downside, it could be forming a shoulder head shoulder pattern on daily candles.

image.png

As you can see only the right shoulder is missing. It is only a possibility, but in case that pattern forms, it would be a further confirmation that the EUR/USD is weak and could go down in the medium long term. It would have to break 1.1600, which is the last support before a possible change of trend.

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If I squint I can see the head and shoulders haha.

But that's another pattern I don't like using in my analysis just because they're so subjective.

You could drawn that H&S so many different ways and still the only thing that matters is the support zone which you've drawn in blue on your chart.

Horizontal support/resistance zones are really all you need ;)

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