EUR/USD- Near Major Support Zone
AvaTrade | Nov 01, 2013 03:43AM ET
The EUR/USD has entered in a major support zone on a 4 hour time frame. The volatility for the price is extremely high, as the price has pierced the Bollinger band and it is trading away from its 20 day moving average.
The piercing of the Bollinger band does have a significant importance when this takes place at a resistance/support zone, because this is an ability to stop the upward/downward move or reverse the trend.
The pair has also broken its upward trend lines (shown in purple), which confirm that the uptrend is no longer in play in this time frame unless it breaks above this once again.
The RSI is trading in an extreme oversold zone which means that the strong bias could be to the upside.
Important zones
Support Zone
1.3565-1.3509 Minor
1.3352-1.3321 Major
Resistance zone
1.3835-1.3793 Major
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The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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