FX Reversals: The EUR/USD Pressures Support
Dailyfx | May 05, 2015 12:49PM ET
- The EUR/USD has bounced off of today’s S4 pivot
- Price is currently below range resistance at 1.1173
- A breakout above R4 would signal a bullish breakout
(Created using FXCM’s Marketscope 2.0 charts)
The EUR/USD opened Tuesday's London trading session attempting to breakout towards new weekly lows. However, despite declining as much 85 pips from today’s open, EUR/USD price action is now trading back inside of its Camarilla pivot range. Currently, price is trading under range resistance which is found at the R3 pivot point at 1.1173. In the absences of a breakout to a new higher high, traders will begin watching for price to move back through today's 57 pip trading range back towards range support at 1.1116.
It should be noted that price has already failed once to break below the S4 pivot at 1.1088. Despite price quickly rebounding from support, a retest of this value could lead to further bearish momentum for the EUR/USD. Alternatively a breakout above the R4 pivot at 1.1201 would suggest price returning back in the direction of its current daily trend. In either breakout scenario, traders can use a move through either the R4 or S4 pivot point to signal the end of current range bound conditions.
---Written by Walker England, Trading Instructor
/h2
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.