The EURUSD is being contained under the round number and proven resistance level of 1.3200 on the daily chart. Price in the recent daily session has moved up to test this resistance and round number level and failed to move through with price closing back below showing that price at this stage is respecting this resistance level.
This resistance level has been a proven level in the past and has acted as a level for traders to make high probability trades with a previous false break Pin Bar being an obvious trade that a lot of price action traders cleaned up on and it could potentiality act as a solid level to look for trades again. There is no clear trend in this market at this stage like many pairs currently in the Forex market with many pairs moving in ranges. The best way to trade these market is from the very best levels.
Traders could look for price action at this key resistance level. To make short trades, really solid and obvious bearish price action will be needed to show that the resistance level is going to hold, otherwise traders should be watching the price action for a possible breakout higher. If price breaks through this resistance level and moves higher, this level will still be a critical level for this market. This level would then look to hold as a new support level and traders could look for any rotations of price back lower to get long.
EURUSD DAILY CHART | 23 JULY 2013
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