EURUSD Price, Chart and Pivot Points:
- Low volatility in EURUSD.
- Pivot points can identify short-term targets.
Q1 2019 EUR Forecast and Top Trading Opportunities
The most widely traded currency pair, EURUSD, has been stuck in a rut for the last few months, with low volatility making trading decisions difficult. The pair have been in a maximum 365-pip range since mid-October 2018 despite heightened US-China trade war tensions, while the Euro-Zone economy grinds to a halt. A lack of price movement (volatility) can make it difficult to trade a pair, so we will look at a short-term trading indicator, pivot points, to see if we can identify price action within this range.
Pivot points are widely used by short-term traders to determine where forex market sentiment may change between bullish and bearish. Pivot points are also commonly used to find likely support and resistance levels. There are a range of different pivot points that traders should study before finding which one that suits their trading style. Below are the classical hourly pivot points:
You can access live pivot points for a wide range of currencies and assets HERE. If you then click on your chosen asset you will be taken to a more in-depth landing page for your chosen asset class.
EURUSD currently trades around 1.1364 and any short- to medium-term upside is likely capped by the 50% Fibonacci retracement level at 1.1448. The pair are also currently stuck between the 20- and 50-day moving average between 1.1335 and 1.1385.
EURUSD Daily Price Chart (January 2018 – February 26, 2019)
Retail traders are 57.3% net-long EURUSD according to the latest IC Client Sentiment Data, a bearish contrarian indicator. Recent changes in daily and weekly sentiment however suggest that EURUSD may soon reverse higher.
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on EURUSD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.
