News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
EUR/USD Fails 2nd Consecutive Daily Breakout

EUR/USD Fails 2nd Consecutive Daily Breakout

Walker England, Forex Trading Instructor

Talking Points

  • The EUR/USD Fails its 2nd Daily Bullish Breakout
  • Daily Price are Now Testing Weekly Lows
  • SSI Remains Extreme, Reading at -2.18

EUR/USD 30 Minute Chart

EUR/USD Fails 2nd Consecutive Daily Breakout

(Created using Marketscope 2.0 Charts)

What is next for the Euro? Click HERE for our analysts Free forecast!

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.

Get real time sentiment data with DailyFX’s sentiment page

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.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Do you know the biggest mistake traders make? More importantly, do you know how to overcome the biggest mistake? Read page 8 of the Traits of Successful Traders Guide to find out [free registration required].

Contact and Follow Walker on Twitter @WEnglandFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES