EUR/USD 4hr Chart Analysis
Long Trades on EUR/USD This Week
The Bulls have a tough road ahead of them this week.
The 1.2700-1.2720 resistance area has held up well amid heavy bullish onslaught on June 18 and 20. The rejection from 1.2700-1.2720 sparked off the large bearish trend we have witnessed in the last two weeks. The 1.2700-1.2720 is also the highest area price has reached in over a month.
This all means that the Bulls may have a hard time breaking the 1.2700-1.2720 area.
I will be looking for bearish reversal trades from the 1.2700-1.2720.
If price breaks the 1.2700-1.2720 the next resistance area is at 1.2790-1.2810.
I will also be looking for bearish reversals from the 1.2790-1.2810 if price reaches it.
If you are entering long trades watch out for the 1.2700-1.2720 and the 1.2790-1.2810 resistance areas.
Short Trades on EUR/USD This Week
Price closed on top of the 1.2625-1.2645 support area last week. The Bears may have trouble breaking the 1.2625-1.2645 support as it has held well recently.
Immediately below the 1.2625-1.2645 is the 1.2600 psychological level which has also held well recently.
If price breaks through the 1.2625-1.2645 and the 1.2600 the next major support area is at the 1.2515-1.2535.
If you are selling you should watch out for the 1.2625-1.2645, 1.2600 and 1.2515-1.2535 areas.
Summary
The Bulls may have a tough time moving up through the 1.2700-1.2720. They will need to combat heavy resistance coupled with monthly highs. This means there is a lot of potential for some good Bearish reversal trades in the area.
The Bears are not facing monthly lows so they have an easier route down. That being said short trades may run in to trouble at the 1.2625-1.2645, 1.2600 and 1.2515-1.2535 areas.
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