Buying EUR/USD
If you plan on opening long positions this week be aware of the following areas of resistance.
- 1.2910 – 1.2930
- 1.3010 – 1.3030
- 1.3130 – 1.3150
We have already seen a bounce from the 1.2910-1.2930 this week so it is clear that there are sellers grouped in this area. I will be watching the 1.2910-1.2930 closely for signs on reversal trades. There was a great short reversal from this area last week so I will be watching closely.
The resistance area at 1.3010-1.3030 acted well as both support and resistance last week. As support the 1.3010-1.3030 temporarily held back a strong Bear trend. As resistance the 1.3010-1.3030 held back an attempt by the Bulls to retrace from the Bear trend. So this area too has a strong grouping of sellers. I will be looking for short reversals if price reaches the 1.3010-1.3030.
Finally the 1.3130-1.3150 represents a three month high and is where price bounce from after last months massive Bull trend. The 1.3130-1.3150 is a massive area of resistance and there are masses of sellers grouped in this area. If price reaches the 1.3130-1.3150 this week I will be looking to enter short reversal trades.
Selling EUR/USD
If you plan on opening short positions this week be aware of the following areas of support.
- 1.2810 – 1.2830
- 1.2700 – 1.2730
- 1.2590 – 1.2610
Price has already had a very strong bounce from the 1.2810 – 1.2830 area this week. In fact one of my students took the bounce as a successful reversal from the 1.2810-1.2830. Unfortunately I missed the trade. We also saw two bounced from the 1.2810-1.2830 last week so it is definitely a strong area full of buyers. I will be looking for Bullish reversals from this area.
Both the 1.2700-1.2730 and the 1.2590-1.2610 have not been hit in almost a month. However, both these areas acted as strong support and resistance last time price was near them. If these areas are hit I will be looking for buyers to enter the market.
For more detailed analysis watch the video below.
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