EUR/USD Locked Between Support And Resistance
Colibri Trader | Oct 17, 2017 04:52AM ET
EUR/USD seems to be locked between support and resistance. Price is currently playing with the imminent support level at 1.1780. There are two possible scenarios here.
Scenario 1
Price rejects this level and forms a pinbar or another bullish candle and drives more buyers to push the price higher. A potential target for a hypothetical trade could be the next resistance level at 1.1880.
Scenario 2
Price negates the nearby support level at 1.1780 and reaches lower for the next support level at 1.1680.
A lot of attention is concentrated on this pair today as there is an obvious tug-of-war between bulls and bears. Price action will show us the way. Just be patient!
h3 DAX Looking Dim/h3I have been monitoring this instrument for quite some time now. There are a few reasons that make me think that we might see some selling in the days ahead.
Resistance
The first obstacle for buyers seems to be the multi-month resistance level just below 13,000. It seems that price is unable to stay steady above this level
Daily Pinbar
The second confirmation for the bearishness of this instrument comes from the daily bullish rejection. There is a daily pinbar on the daily chart, which seems convincing for the short-sellers. It is followed by an inside day candle on the daily chart. What I am looking for is a confirmation from the 4 hour chart that will send more sellers this way.
The Closer Picture
At a closer look, things don’t look so rosy. It seems like the 4 hour chart is rejecting this level and is sending mixed signals to short-sellers. All in all, a clear bearish signal should come from the 4 hour chart that will confirm our daily outlook. For now, I am not seeing such.
/h3
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