EUR/USD Attempts to Breakout Lower
- EUR/USD opens lower after US Initial Jobless Claims
- Bearish breakouts signaled under 1.0839
- Bullish reversals begin over 1.0873
(Created using TradingView Charts)
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The EUR/USD is trading lower this morning, and is currently testing values of support after today’s US Initial Jobless Claims release. Initial expectations for the event were set for at 275k; however, the number was reported better than expected at 271k. Price action for the EUR/USD is now trading at support found at the S4 pivot point at a price of 1.0839. Traders looking for a breakout below support may extrapolate targets using today’s 69 pip pivot range. This places initial targets for a bearish decline near 1.077.
It is worth noting that sentiment for the EUR/USD is mixed, with SSI (Speculative Sentiment Index) reading at -1.14. In the absence of an extreme, traders may begin watching for a return to range bound market conditions. Today’s range starts at the S3 pivot found at 1.0873. If prices trade above this value, it may open up the pair to trade back towards values of resistance. Range resistance is seen in the graph above at the R3 pivot at a price of 1.0942. A move to this point could be seen as an invalidation to the current market conditions. Conversely, if prices continue to rise above the R4 pivot at 1.0976 it would be seen as a bullish reversal. In this scenario, traders may look for prices to challenge the current weekly high at 1.1059.
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