FOREX Chart Of The Day: EURUSD Trade Update
Do you trade #EURUSD?
The major #forex pair re-tested the most traded level of last week and rejected.
See how you could have traded the level here…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, I’m going to go over EUR/USD.
Particularly, we looked at a potential long opportunity from the most traded area of last week. These areas are often where institutional traders are doing business with the market, or at least short-term traders are doing business with the market. When the price breaks out of these areas, the market typically returns to retest them and see if the price gets defended.
So, we know at the start of the week, we said that this level was going to be interesting to us moving forward and the market then came and retested it here, here, here, and even recently here. We can see that last week’s area of value, which was this area through here, has acted as support. Not once, but four times this week already. It is showing us that the market is defending this level. Every time it comes back, it defends it. That is why we looked to get long at this moment in time because the price was defending that level here.
Now you can manage this. You can move your stop-losses underneath this low. The price is now making higher highs on the hourly timeframe again. I would expect the market to head towards the current high of the week, which is at least through here. We’re targeting the highs of last week because we’re expecting the US Dollar weakness to continue to follow through this week towards that 1.2330 area and where we expect longer-term buyers to step into the market. But at the moment, the market is finding value down here at the most traded area of last week, and it keeps coming back to it. Now, it doesn’t mean that the market will continue and move forward; it is the fact that it could either break this area and retest it, or hold above it. At the moment, it’s holding.
What we can do is to bring those stop-losses underneath those lows. We can even look to bank some profits, here, and see if the rest runs – whichever you feel comfortable doing. But, why we got in this move in the first place was because the price came back we’ve already retested it. It rallied off of it; then it came back again.
We noticed on the four-hour timeframe that the price was closing above it and slowing down into the level. When you see this type of price action at a level of interest, the market typically does reverse. So, that’s what we see at the moment. Let’s see if we can push up to the upside, but let’s think about that first.
I hope you enjoy the content so far. I hope you have a great Christmas as well. I will speak to you very, very soon.
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