For Traders

Analytical Reviews

Trading plan

04.08.202011:09 Forex Analysis & Reviews: EUR/USD Fighting At Resistance!

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

EUR/USD is struggling to stay higher even if the price has developed a bearish engulfing pattern on the Daily chart. It is trading at 1.1788 level and it continues to pressure the near-term major resistance levels.

The pair has managed to recover today after the last two session's drop as the US Dollar Index has slipped lower. The reversal pattern was confirmed by yesterday's bearish candle, but a corrective phase is far from being confirmed.

EUR/USD has come back higher to test and retest the 1.1800 psychological level and the 250% Fibonacci line of the descending pitchfork. A valid breakout above the 1.18 and above the 250% line will invalidate a potential reversal, downside movement.

Though, another false breakout or another rejection from the mentioned resistance levels will attract more sellers which will drive the pair down in the short term.

EUR/USD Trading Tips

Buy EUR/USD if it closes again and consolidates above the 1.18 level, the first upside target is at the 1.1909 former highs, while the second goal will be at the R1 (1.2060) level.

Sell a false breakout with great separation above the 1.18 and above the 250% line, or a drop and close below the 1.1752 today's low. The first downside obstacle is at the Pivot Point (1.1623) level, the warning line (WL1) could attract the price as well.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.