Posts

EUR/USD Daily Support Cracks

avatar of @forexbrokr
25
forexbrokr.
@forexbrokr
·
·
0 views
·
2 min read

Direct from the desk of Dane Williams.



Hey team,

With EUR/USD clinging to daily support for the last week or so, things are finally starting to get interesting.

We've been watching this zone for a while now and I just wanted to re-publish this quote from the last time I wrote about EUR/USD on the blog because it's so relevant:

"Support really is support until it's not."

"Monday's open is going to be an interesting one."

None of us have a crystal ball that tells us where the market is going to go.

Nope, not even that master trader you follow on Twitter.

All any of us can do is put ourselves into positions that offer good risk:reward and give us a chance to hit home runs when the market tosses us a soft underarm.

One way of doing this is to trade around support/resistance zones.

If price is above a daily zone, then we want to be getting long.

If price is below a daily zone, then we want to be getting short.

Pretty simple concept that tries to keep us trading in the direction that the market is trending in.

With that in mind, take a look at the EUR/USD daily below:

EUR/USD Daily:

Yep, that's the same zone we've been watching trade as support for the last few weeks and price has finally lurched down through it.

Keeping what I just said above in mind, this means that we want to be looking for shorts.

Below higher time frame supporting that's a short.

Now zoom into the EUR/USD hourly chart and lets have a look at what the price action is giving us:

EUR/USD Hourly:

We look for the first area of short term support that when retested as resistance, can be used as a short entry.

In this case, that's just the last green candle before the turn marked with the first arrow.

Then an entry would be when price retests it at the second arrow.

As so often is the case with trading this support/resistance strategy, you don't have to be first to make money.

Just like you see here, the market will so often give you a second chance to get in if you miss the first.

And away we go with the bears now in control.

Best of probabilities to you,

Dane.



FOREX BROKR | LeoFinance Blog Daily market analysis.

Posted Using LeoFinance Beta