EUR/USD Fails 2nd Consecutive Daily Breakout
- The EUR/USD Fails its 2nd Daily Bullish Breakout
- Daily Price are Now Testing Weekly Lows
- SSI Remains Extreme, Reading at -2.18
(Created using Marketscope 2.0 Charts)
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The EUR/USD has failed another breakout attempt this morning, after initially trading over today’s R4 Camarilla pivot at 1.1445. Prices have quickly retraced from this point, with the EUR/USD now trading back inside of today’s pivot range. Range resistance is identified in the graph above at the R3 pivot, found at a price of 1.1424. If prices continue to trade beneath this value, it opens the pair up to trades towards range support. Today’s pivot range measures 42pips, which places support at the S3 pivot at a value of 1.1382.
In the event of a price reversal to support, breakouts begin under the S4 pivot at 1.1361. In the event of a bearish breakout, initial targets may be found near 1.1319 after extrapolating 1X of today’s 42 pip trading range. Alternatively, if prices attempt another bullish breakout, traders may look for prices to trade back above 1.1445. In this scenario, if the bullish breakout is successful, traders may look for initial targets near 1.1487. A move to this point would be considered significant, as the EUR/USD would be trading to new monthly highs. This would also be a strong signal for the potential resumption of the pair’s ongoing bullish daily trend.
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SSI (speculative sentiment index) for the EUR/USD is currently reading at -2.18. This value is considered extreme, with 69% of positioning short the pair. However, it is also important to mention that SSI has moved from a reading of -2.41 last week. If this value continues to neutralize, or even flip positive later in the week, it may suggest a change in the current bullish market conditions.
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