Direct from the desk of Dane Williams.
We ended last week with a post highlighting EUR/USD sitting at a confluence of resistance.
Now we've hit the weekend without the market really giving us a clear indication to get short, I wanted to update my thinking on how we should be attacking the zone.
Let's get into the EUR/USD analysis below.
EUR/USD Higher Time Frame Analysis
Start with that same EUR/USD daily chart, but I'm going to remove the lower zone from the chart in the blog I linked to above.
Price didn't pause for even a second to respect it, which makes it useless especially in a daily zone which we are meant to be simply using as a guide to say which direction we want to trade in.
Here's the only daily zone that I see being in play:
EUR/USD Daily:
As we're below higher time frame resistance, we'd rather be playing from the short side.
EUR/USD Intraday Analysis
Now zooming into the EUR/USD hourly chart, I've scrolled back to find the last areas of short term support that when retested as resistance, we could use to short.
Here's what I found:
EUR/USD Hourly 1:
You can see that the two zones just happened to be perfectly retested already which shows they're certainly significant.
Now scrolling back to the current price action:
EUR/USD Hourly 2:
I just have a feeling that price is going to give us a second chance to play these levels.
Something I always preach in my trading style is patience. We don't have to be first to make money off our levels because the market will more often than not, give us a second/third chance to enter.
Next week if price comes back up and stalls anywhere near those blue intraday zones, we're going to have a chance to short with good risk:reward.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.