#EURUSD has rejected the key resistance level again, suggesting the market will remain range-bound.
If that’s the case, how should you trade the range?
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
In this video, we will take a look at EUR/USD since the price has started to develop a little bit further.
We spoke about this in the Forex Market Outlook, and we identified that the market was coming back up into the 1.2165 zones, which has been used as support and resistance quite a lot recently.
Now, because the US Dollar was on a little bit of a bearish move, we expected the potential for the market to breakout or get rejected, then come back down and take these lows because, at the end of the day, the market is in a mixed area. We’re more likely ranging between these two points rather than in that definitive trend.
What I’ve been eyeing is the opportunity that if the four-hour changes cycle, could we see a little bit of downside back into this zone, around 1.2080? If we jump into that four-hour timeframe, we can see that the price has given us one close below the low, here.
What we typically look for are two closes below previous structure lows to prevent false breakout opportunities. At the moment, we have the market rallying up, it’s making a higher high, higher low. It came back up, retested our key level, and broke the lows.
If we get those two confirmed closes below, we could look for the opportunity to sell on a pullback into the 1.2080 area for short-term targets.
If the price breaks further and breaks lows, we can look for that opportunity down. However, if the price finds support, we can look for that area there.
At the moment, trading the range makes more sense here.
Keep an eye on EUR/USD; if you do get that four-hour close below, we could trade the range.
I hope you enjoyed this video update, and I’ll speak to you in the next one.
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