EUR/USD/Technical Analysis/Trade Ideas

EUR/USD: Strong technical resistance at 1.3145; short-term indicators overbought

You can view the daily chart here, https://www.tradingview.com/x/ud6ArubT/, and see that the pair has broken and closed above the 55-day MA which is a bullish sign but it’s stalling near a major 38.2% Fibo retracement level at 1.3145.

The 4-hr chart is in a strong uptrend but is heavily overbought and this may give bears a day-trading opportunity?

Overall, buying dips still favoured but watch for topping signs at 1.3150 for an intraday short trade with up to 200 pips potentially available.

  1. Two possibilities Jason. The safer one is, based on strong uptrend, wait for test of 13145 and if that fails again you sell with tightish stops above highs. Second is you watch hourly chart and as soon as it starts to look bearish, you revert to sell-rally mode with s/l above 13150ish. That’s how I see it++

  2. Sean, I have a question here. How do you judge for a pair fails at certain level? for example, in this case, it could fail at first test but then 30 minutes later it could break.

  3. Sure Jason, that happens all the time. From a tech perspective we like to see a high forming; so on 30 min chart you need a high near relevant level and then two lower highs to right hand side (so basically you have to wait for an hour). If the market breaks sharply lower during that hour then we probably miss the opportunity but that happens a lot as well 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *