EURUSD TRADING IDEAS

EURUSD TRADING IDEAS

EURUSD TRADING IDEAS

EURUSD WEEKLY BEARISH BELOW 1.2290

Last week we saw the EURUSD pair fall sharply, as the traders sought the safe haven of the U.S dollar index as equity markets across the globe plummeted amidst fears of rising wages and interest rates, harming corporate profits and also potential derailing the housing booms underway in the UK and U.S. We also we saw traders take profit on the EURUSD pair from very overstrected technical levels, with the key 100 month moving average on the EURUSD clearly breached by sellers.

Looking back to January, we saw the EURUSD pair spike toward the 1.2537 area, after breaking above the 1.2290 level, after briefly range-trading between 1.2210 and 1.2290. Traders should now look to the 1.2290 level as key resistance, whilst the 1.2210 level is key weekly support on the EURUSD pair, we back to the early January 2018 range trade, and looking for the next directional break-out

KEY LEVELS TO WATCH FOR

Should we break above the 1.2290 level, traders have 3 key levels to watch, both for buyers and for potential swing sell trades. Above the 1.2290 level we have the 1.2335 level which is very minor resistance, we also have more importanly the 200-hour moving averge and key 50 percent Fibonacci retracement of multi-year high to the swing-low, around the 1.2372-78 level. Above this area we have the 1.2409 level, which is the key 61.8 fib, this may be the key demand and area traders are targeting.

The U.S dollar is well worth a look this week, after breaking above the 0.8890 level last week, we may see some retracing in the U.S dollar early week to guage the overall demand for greenback. Was it just a correction, or a more meaningful break in the multi-month downtrend.