Talking Points
- EURUSD Starts Week In Trading Range
- Range Resistance Sits at 1.3445
- Breakouts Signaled Under S4
EURUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Despite Friday’s active trading session, the EURUSD has opened Monday into a new trading week relatively quiet. Overnight, the EURUSD has traded inside a predefined trading range as outlined by R3 and S3 camarilla pivots. Currently overhead range resistance sits at 1.3445 (R3) and support at 1.3409 (S3). As the pair continues to trade between these values, traders will wait for price to test either line of support or resistance before forming a trading bias.
As the trading session continues, traders will also continue to look for signs of increasing volatility. A breakout to a lower low under the S4 pivot at 1.3391, would signal a return to trending markets. Conversely a breakout to a higher high above the R4 pivot at 1.3463, would signal the beginning of a EURUSD bullish reversal. In the event of a breakout, traders should reconsider their trading bias based off of the change in market conditions.
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---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
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Previous Market Setups:
FX Reversals: USDJPY Reaches Range Resistance
FX Reversals: Mondays EURUSD Range
FX Reversals: USDollar Breaks Resistance
