Hey guys,
I had a busy week last week so I was not able to do the analysis. My mum came over from Italy to visit so I was busy all week.
I will be trading again this week so here is the analysis.
EUR/USD 4hr Chart Analysis
Long Moves on EUR/USD This Week
At the moment the Bulls are locked in a tight struggle with the Bears and neither can gain an advantage.
One thing that is working in the Bulls favor is the lack of resistance immediately above the current price levels. The close resistance is at the 1.2600 which is currently 60 pips away. So the Bulls do have a bit of space to make a move. The 1.2600 did not hold very well last week so it may provide no resistance to the Bulls.
After the 1.2600 is the 1.2625-1.2645 resistance area which held reasonably well last week. I will be expecting significant resistance at the 1.2625-1.2645 and I will be looking for reversal trades if price approaches it.
If the Bulls break the 1.2625-1.2645 resistance the next major resistance is at the 1.2719-1.2730 area.
Short Moves on EUR/USD This Week
This week price opened on top of the 1.2515-1.2535 support area which held well last week and may hold well this week.
Immediately below the 1.2515-1.2535 support is the 1.2500 psychological level. The 1.2500 has held well in the last few weeks so watch out for it.
If price breaks the 1.2500 the next support area is at the 1.2390-1.2410.
Summary
I will be looking to trade bullish reversals from support and bearish reversals from resistance.
For bearish reversals the key levels I am watching this week are the 1.2600 psychological level and the 1.2625-1.2645 resistance area.
For bullish reversals the key levels I am watching are the 1.2515-1.2535 and the 1.2390-1.2410.