A EURUSD Monday Reversal
- EURUSD Opens in a 61 pip range
- Range Support Sits at 1.2422
- Bullish Reversals Signaled Over 1.2514
AUDNZD 30Minute Chart
(Created using FXCM’s Marketscope 2.0 charts)
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After a big NFP Friday last week, the EURUSD starts Monday’s trading inside of a 61 pip range. Price began the US trading session at range resistance found at the R3 pivot pictured above. Price is currently moving off this value and heading towards daily support. Current support is found at the S3 pivot at a price of 1.2422, completing today’s range. Reversal traders, looking to take advantage of the range, will look for price to bounce in this area.
In the event that price begins to gain momentum, traders may elect to look for a breakout. A price break above 1.2514 at the R4 pivot would signal a bullish reversal. Likewise a reversal in price, under the S4 support pivot at 1.2391, would show a reversal towards continued bearish momentum in the direction of the EURUSDs daily trend. In either breakout scenario, the range would be considered concluded and traders can begin to identify positioning based off of the markets given direction.
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.
---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.