Talking Points
- EURUSD Tests S4 Support
- Breakout signaled under 1.3338
- Range Support Starts at 1.3357
AUDUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The EURUSD has started the US Trading session attempting to breakout to a lower low for the second day in a row. While price tested the last line of support for the pair at S4, it failed to break during this morning’s U.S Trade Balance news release. Support still sits at the S4 camarilla pivot, residing at 1.3338. If price breaks and closes below this value, it would become a strong indication that the EURUSD is moving towards lower lows for the remainder of the trading day.
Breakout and trend trader can take advantage of this directional reversal, by looking for opportunities to sell the EURUSD with current market momentum.
If the EURUSD fails to breakout, traders should watch for price to reverse back into a defined trading range. A move of this type, could signal a false breakout and a return to less volatile market conditions. Currently the range is defined by S3 support at .1.3357 and resistance at 1.3393. A confirmed price advance back to this point would invalidate the creation of any lower lows, at which traders should consider concluding any breakout trades.
Are you unfamiliar with camarilla pivots and trading intraday market reversals? Increase your trading education with DailyFX! You can continue learning and work on your trading education HERE.
Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your scalping techniques while tracking the market in real time.
Click HERE to Register Now
---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your email information.
Previous Market Setups:
FX Reversals: EURCAD Range Reversal
FX Reversals: USDJPY Breakout Update
FX Reversals: GBPUSD Market Breakout
