News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Stocks’ earnings data was strong; rocky 3Q’21 may be underway US economic data begins to sour, but the delta variant gives the Fed cover. Get your $USD market update from @CVecchioFX here:https://t.co/sq7BsfyNe9 https://t.co/Ado2dPBJLd
  • #Gold Price Outlook: Gold August Battle Lines Drawn- $XAUUSD Levels - https://t.co/xsdZiL8uyy https://t.co/KnGbp5nXyI
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 0.56% Oil - US Crude: -0.11% Gold: -0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ZNNdqAFGoX
  • US Senator Schumer: Senate will finish infrastructure and budget bills before August recess $USD $DXY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.95%, while traders in France 40 are at opposite extremes with 81.86%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9gsaW4yXD7
  • Fed's Bowman: - It may take time for some people to return to work - The record number of job opportunities is a good sign
  • Fed's Bowman: - There is still work to be done to get the US economy back on track - Employment remains significantly below where it was
  • USD/CAD bounced off support, but looks only corrective in nature. Short-term charts suggest we will soon see price turn down. Get your $USDCAD market update from @PaulRobinsonFX here:https://t.co/zdfLSKm6LF https://t.co/PF5ZXDBxI0
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.60% US 500: 0.60% France 40: 0.22% Germany 30: 0.18% FTSE 100: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/64Hdik4K4t
  • Heads Up:🇺🇸 Fed Clarida Speech due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-08-03
EURUSD at Channel Resistance

EURUSD at Channel Resistance

Jeremy Wagner, CEWA-M, Head of Education

The upward push in the EURUSD has placed the price into a territory with 2 points of resistance.

  1. Downward sloping resistance line connecting the highs of Feb 1, Feb 9
  2. 61.8% retracement level of the Feb 9 to Feb 14 downtrend
EURUSD_Channel_Resistance_body_Picture_1.png, EURUSD at Channel Resistance

A confluence of resistance at the same area represents stronger resistance. Additionally, I want to share an interesting pattern in this market as well.

First of all, the move from February 7 lows to the February 9 high retraced about 61.8% of the previous move (green line). Today’s price pushed to the 61.8% retracement of its corresponding down move (blue line). So this pair is displaying a repeating pattern.

Also, it appears the hourly chart is taking one week to complete its current cycle. That means from the high point on February 1 to the high point on February 9, there are 8 days of separation. 8 days from February 9 points to today (February 17). Timing cycles are, in my opinion, a secondary tool. I would not place a trade solely on the timing cycle. However, with the price in an area of resistance AND a retracement pattern in play, this is a trading opportunity in the making.

Trading Opportunity

Look for prices to make one more push above the current swing high near 1.3620 in the next day. Stop placement is 130 pips above near 1.3750. If prices are successful in moving below 1.3490, then we’ll move the stop to break even. The target price for taking profits is the lower channel line in the 1.3300’s.

If prices do not make it above 1.3620, then wait for the Relative Strength Index (RSI) to break below 50 to confirm the bearish divergence and therefore place the market order. A stop would then be placed above the current swing high. Profit targets would be in the similar area in the 1.3300’s.

EURUSD_Channel_Resistance_body_Picture_2.png, EURUSD at Channel Resistance

For more information on trading divergence in RSI (also known as Failure Swing), log into the DailyFX Plus Trading Course and watch the Lesson 2 video. (You will need your live FXCM account username and password to access.)

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES