The EUR/USD Fails to Break Resistance
- The EUR/USD continues to trade in a 184-pip range
- Range resistance is found above 1.0984
- SSI reads at -1.31
(Created using Marketscope 2.0 Charts)
Losing Money Trading Forex? This Might Be Why.
After a series of daily advances, the EUR/USD has been unable to break above price resistance found above last Friday’s high at 1.0984. This lack of trend development suggests that the EUR/USD is consolidating in the range pictured above. Traders watching this pricing pattern develop; have two distinct opportunities for trading. First traders may continue to look for range trading opportunities as long as prices remain inside of support and resistance. Currently, prices are moving back towards support after a test of resistance earlier this morning. As seen above, price support for the EUR/USD is found near 1.08000.
Alternatively, in the event that prices trades through either support or resistance, it would suggest that prices are attempting to form a trend on the creation of a new high or low. In this scenario, traders watching the EUR/USD range may plan to trade a breakout in the markets chosen direction. Using a 1-x extension of the 184 pip range traders may then look to extrapolate potential targets for the pair. This places bullish breakout targets near 1.1168. Conversely, a bearish breakout below support exposes a decline towards 1.0619.
Traders tracking sentiment should note that SSI (Speculative Sentiment Index) for the EUR/USD is currently reading at -1.33. With this value being slightly negative, with nearly 57% of positions short; it does suggest a slight bullish bias for the pair. In the event of a breakout, traders should continue to watch this value. If SSI moves to an extreme, it can then be used to confirm the development of any new trend.
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