EUR/USD Rebounds From Weekly Lows
- EUR/USD Rebounds From Weekly Lows
- Intraday Support Found Above 1.1000
- Looking for additional trade ideas for the EUR/USD and other Currencies? Check out our Euro Trading Guide
The EUR/USD is beginning to pair losses after closing lower for 3 consecutive sessions and declining as much as 219 pips for the week. The current daily low for the EUR/SUD resides at 1.0985, but technical traders will continue to monitor the psychological 1.1000 level going into tomorrow’s University of Michigan’s Confidence figures and Janet Yellen’s speech at the Boston Fed conference. Both of these events are marked as high importance events, with both having the ability to shift the direction of the EUR/USD.
EUR/USD 1 Day, Rebound
(Created using TradingView Charts)
As prices continue to bounce off daily lows, traders may look to short term momentum cues to decipher the extent of this morning’s EUR/USD rally. Referencing the 10-minute graph below, the Grid Sight Index (GSI) has identified this morning’s move as a short-term uptrend by highlighting a series of higher highs. After reviewing 63,789,892 pricing points, GSI has also indicated that price action has continued to advance by 20 pips or more in 42% of the reported 67 matching historical events. With less than half of historic instances showing an increase in price, this may suggest that this morning’s bounce in price may be slowing. However if the EUR/USD does trade through the first bullish price distribution at 1.1062, it may suggest that the pair is preparing to trade higher on a late day rally.
Alternatively, GSI has indicated that prices have declined by 40 pips or more in 21% of the identified historical instances. This places the first bearish historical distribution at a price of 1.1002. A move through this point be significant as it opens the EUR/USD to close the day below psychological support at 1.1000. It should be noted that the final bearish distribution is displayed at a price of 1.1094. A continued decline to this point would completely invalidate this morning’s bullish momentum, and suggest a shift in the EUR/USD’s intermediate trend.
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