FX Reversals: EURUSD Moves to Support on News
- The EURUSD moves to S3 support at 1.1237
- Today’s range measures 148 pips
- R4 breakouts begin at 1.1459
EURUSD 30Minute Chart
(Created using Marketscope 2.0 Charts)
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The EURUSD opened today’s US trading session lower, on better than expected Gross Domestic Product data. Expectations for this event were set at 3.2% and were released at 3.7%, causing the EURUSD to move towards values of support. Current price is resting at today’s S3 Camarilla Pivot at 1.1237. If price remains supported, it opens the pair up for a potential bounce back towards key points of resistance. As seen below, today’s R3 pivot is found at a price of 1.1385, completing the EURUSD’s 148 pip daily trading range.
In the event prices continue their decline, traders will look for a continuation of bearish momentum below the S4 pivot found at 1.1163. This point marks the last point of pivot support and a move through this value would suggest prices are breaking out towards lower lows. In a bearish breakout scenario, traders can begin to target a 1x extension of today’s range near 1.1015. Alternatively, a bullish signal would be created over the R4 pivot, starting at 1.1459. A move beyond this value would be considered significant as it would mark the first bullish breakout in the last three trading periods.
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---Written by Walker England, Trading Instructor
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