EUR/USD Attempts a Higher High
- The EUR/USD opens inside of a 39 Pip Range
- Bullish breakouts begin over 1.0903
- Initial bullish targets include a 1x range extension at 1.0903
(Created using Marketscope 2.0 Charts)
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The EUR/USD has started Monday’s trading inside of a 39-pip range. Support for today’s range can be found at 1.0845, which is represented by the S3 pivot on the chart above. Conversely, range resistance begins at the R3 pivot, which is found at a price of 1.0884. Currently price action for the EUR/USD is trading above the R3 pivot point. In the event that prices move back inside of this value, range traders will again look for the pair to trade back towards values of support.
If the EUR/USD continue to trade above R3 resistance, it would open up the possibility that the pair may breakout to a higher high. In this scenario, traders would look for price action to trade through the R4 pivot point found at 1.0903. Potential bullish breakout targets include 1.0942, which is found by extrapolating a 1-x extension of today’s 39-pip range. Even though prices are attempting to break higher, it is worth noting that today’s S4 pivot point is found at 1.0827. A move back to this value would be significant, as it would signal a change in the current market conditions.
Traders using SSI (Speculative Sentiment Index), to gain a direction bias for the EUR/USD, should be aware that the index currently sits at -1.34. When taken as a contrarian signal, this reading is slightly bullish for the EUR/USD. While this number is not yet considered extreme, in the event of a breakout, traders should continue to monitor this value. If SSI reaches -2 or greater, it may signal the beginning of a larger bull trend for the pair.
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