Good Times Readers,
Today, EURUSD has an interesting setup for our daily trading. Where since a few days ago, this pair is still in an interesting pattern.
Check out EURUSD in the following 4 hours chart:
Viewed from the chart above, it appears that EURUSD is still moving inside the previous swing zone (Black Box) with the movement of flats and within a narrow range, which illustrates the unclear interest in transactions in the formation of direction. The price reaction to this zone boundary will be a confirmation of where the price will move next.
For today's entry reviews, let's look at EURUSD in the following Hours chart
Based on the picture above,
I have determined the following Intraday Support and Resistance Levels:
Resistance2 (R2): 1.2421
Resistance1 (R1): 1.2342
Support1 (S1): 1.2288
Support2 (S2): 1.2216
From the chart above, seen in this 1 hour time frame, the EURUSD pair yesterday only moved weakly in the small range around the EMA200 line. This illustrates the drastic decline in selling interest if it sees the previous downward pressure strong enough.
The price reaction against the EMA200 line will help us find confirmation of whether the previous decline will bear fruit into a pullback to rebound back, or the current weakness will change to a continuation pattern. Observe the reaction along with the volume formed to avoid assumptions and remain objective in the analysis.
Use the Volume type indicator to help us see the power of transactions in each candle.
Level R1 and S1 level today will again measure how much the trader's interest in this pair. Be aware of any rejection or consolidation at these levels.