Forex Technical Outlook: EUR/USD

Euro

EUR/USD

During the course of Monday’s sessions, we saw that the single currency spent most of the day range bound by 1.1119 and the 4hr swap, Support barrier at 1.1072.

Risk/Reward considerations argue against attempting to trade this temporary 4hr range, especially since the 1.1100 handle is lodged in between.

A drive above offers at 1.1119 on the other hand, could indicate further Northside towards the 4hr supply zone coming in at 1.1187-1.1158, a profit objective of nearly 40 pips.

If 1.1072 is taken out the 4hr demand area at 1.1009-1.1039 would likely be the next objective, a distance of around 30 pips. However, price is likely to break South, since room to continue lower is being seen on the daily chart from the recent bounce off of the daily Resistance mark at 1.1148.

The small space available for price movement Tuesday makes it extremely difficult to trade.

So, standing aside until more conducive price action presents itself.

 

After finding a trading system that works for you, the more cryptic and esoteric fields of study can then be incorporated into your technical and trading toolbox.The bottom line when utilizing any type of analytical method,technical or otherwise, is to hold to the basics, which are methodologies with a proven track record over a long period.

Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technical trader

Stay tuned…

HeffX-LTN

Paul Ebeling

 

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