EURUSD: Trend-Defining Resistance at Risk

DailyFX

Strategy: Flat

Prices bounced from support at 1.2831, the 23.6% Fibonacci expansion, as expected after putting a Bullish Engulfing candlestick pattern. The bulls now aim to challenge resistance at a falling trend line established from May 2011, now at 1.3103. A break above that initially targets 1.3283. Alternatively, a reversal through support initially targets the 38.2% Fib (1.2620). Current positioning doesn’t offer an actionable trade setup and we will stand side for now.

View photo

.
EURUSD_Trend-Defining_Resistance_at_Risk_body_Picture_5.png, EURUSD: Trend-Defining Resistance at Risk

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Rates

View Comments (0)