EURUSD Price Breakout Update
27 Oct 2014 14:30, GMTTalking Points
- EURUSD Opens with a False Breakout
- Range Resistance sits at 1.2680
- Range Reversals Triggered Under 1.2635
EURUSD 30Minute Chart
(Created using FXCM’s Marketscope 2.0 charts)
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The EURUSD has opened the U.S. trading session this Monday morning attempting to breakout above resistance. The breakout failed, and price is now trading inside of its predefined trading range. Currently range resistance sits at the R3 pivot, found at a price of 1.2680. Range support is found 28 pips lower, at a price of 1.2652. With price back inside of its range, range reversal traders will look for a move back towards support in the absence of any new breakouts.
In the event that range resistance breaks, and price does attempt to breakout again, traders can look to trade with the markets new momentum.
A break above the R4 line of resistance at 1.2702, would indicate another attempt of the market to create a bullish bias. Conversely, a price break blow the S4 pivot at 1.2635 would show a return of USD strength, pushing the EURUSD back in the direction of its daily trend. In either breakout scenario, todays range would be considered invalidated and traders can then consider initiating new positions based off of a break of either support or resistance.
Are you new to trading with pivot points? To become more familiar with Camarill Pivots and how to use them for day trading FX Reversals, check out the suggested reading links below. This way you can continue your trading education, while working towards actively incorporating pivot points into your selected day trading strategy.
Suggested Reading:
Trading Intraday Market Reversals
---Written by Walker England, Trading Instructor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.