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
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • US Dollar Looking for a Lifeline in PCE Inflation Data - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/07/30/US-Dollar-Looking-for-a-Lifeline-in-PCE-Inflation-Data.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #USD #Dollar #PCE #inflation
  • Heads Up:🇮🇹 Inflation Rate YoY Prel (JUL) due at 09:00 GMT (15min) Expected: 1.7% Previous: 1.3% https://www.dailyfx.com/economic-calendar#2021-07-30
  • Heads Up:💶 Inflation Rate MoM Flash (JUL) due at 09:00 GMT (15min) Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-07-30
  • Heads Up:💶 Inflation Rate YoY Flash (JUL) due at 09:00 GMT (15min) Expected: 2% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-07-30
  • Heads Up:💶 Unemployment Rate (JUN) due at 09:00 GMT (15min) Expected: 7.9% Previous: 7.9% https://www.dailyfx.com/economic-calendar#2021-07-30
  • Heads Up:💶 Core Inflation Rate YoY Flash (JUL) due at 09:00 GMT (15min) Expected: 0.8% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-07-30
  • Heads Up:💶 GDP Growth Rate QoQ Flash (Q2) due at 09:00 GMT (15min) Expected: 1.5% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2021-07-30
  • Heads Up:💶 GDP Growth Rate YoY Flash (Q2) due at 09:00 GMT (15min) Expected: 13.2% Previous: -1.3% https://www.dailyfx.com/economic-calendar#2021-07-30
  • 🇭🇰 GDP Growth Rate QoQ Adv (Q2) Actual: -1% Previous: 5.4% https://www.dailyfx.com/economic-calendar#2021-07-30
  • 🇭🇰 GDP Growth Rate YoY Adv (Q2) Actual: 7.5% Previous: 7.9% https://www.dailyfx.com/economic-calendar#2021-07-30
Euro-Zone Optimism Pushes EURUSD into Solid Resistance

Euro-Zone Optimism Pushes EURUSD into Solid Resistance

Jeremy Wagner, Lead Trading Instructor, DailyFX Education,

The markets cheered and the EURUSD rallied when a plan was produced to plow through the Euro-zone sovereign debt crisis. However, the EURUSD is still entrenched in a longer term down trend and this recent rally simply pushed the pair into solid technical resistance. Look for high probability areas on a price chart to identify selling opportunities.

On the daily price chart below, notice how the prices created a series of lower highs and lower lows. This is a simple method for determining the direction of trend.

Euro-Zone Optimism Pushes EURUSD into Solid Resistance

Two points of resistance collided with price yesterday near 1.4245.

  1. The former support line turned new resistance connecting the June 2010 and January 2011 lows (black line above).
  2. The 78.6% retracement level from the August 29, 2011 high to the October 4, 2011 low

This gives us a good chance at a good risk to reward ratio as the 1.4245 area is significant resistance in the eyes of the market participants. This confluence of resistance offers us an opportunity to align our trade in the direction of the daily trend so we will consider sell trades.

Euro-Zone Optimism Pushes EURUSD into Solid Resistance

Today, we are using the MACD oscillator to help us time entries into the pair. On the EURUSD 4 hour price chart, the MACD indicator is getting ready to cross down which is in the direction of the daily trend. Therefore, our MACD signal is aligning itself up with the direction of the trend creating a good chance at a good risk to reward ratio trade.

Once the Red MACD line crosses the blue signal line, we have our signal to enter the trade. Place the stop just above the swing high from yesterday near 1.4270. Look to take profits near 1.3700 for a nearly a 1:4 risk to reward ratio.

Additional Resources

A Trending Pip Count (Text)

Identifying the Trend (Video)

MACD: Triggering Trades in Oscillating Markets

Trading with MACD (Video)

Fibonacci Retracements: How to Trade Fibs in Forex

---Written by Jeremy Wagner, Lead Trading Instructor, DailyFX Education

To contact Jeremy, email jwagner@dailyfx.com. Follow me on Twitter at @JWagnerFXTrader.

To be added to Jeremy’s e-mail distribution list, send an email with the subject line “Distribution List” to jwagner@dailyfx.com.

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

DISCLOSURES