EURUSD- Maybe Time to Go… Down

The euro is at a 6-month high in expectation of the release of the first euro zone data. Traders are looking at the revised GDP figure in an anticipatory mode due to the uncertainty of the ECB’s stimulus program and how fast the EU would scale it back. If fundamentals were left aside, the short-term picture is as shown above.

The Technicals:

We have the EURUSD 4 Hour chart and a significant resistance level just around price.

Current price: 1.1020

Resistance zone: 1.1000-1.1020

TP1/Support #1: 1.0850

TP2/Support #2: 1.0750

Scenario 1: Based on the figures above, if the EURUSD was to reverse direction, the first support level is our take profit zone and is standing at 1.0850. The second take profit level is the support level at 1.0750.

If the EURUSD is to break out from the current resistance zone, price action traders will be looking at the figures below.

Current price: 1.1020

Resistance-turned-Support zone: 1.1000-1.1020

TP1/Support #1: 1.1300

TP2/Support #2: 1.1600

Scenario 2: Based on the breakout scenario, the current resistance will act as a support. Traders will be looking to take profits first at 1.1300. If that level holds, then they will overlook the next take-profit level at 1.1600.

Guest post by colibritrader[1]

Get the 5 most predictable currency pairs[2]

from Forex Crunch http://feedproxy.google.com/~r/ForexCrunch/~3/IYQc-jr7kcc/

from Online Forex Trading Resource
View thesource article here

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