Thursday, January 28, 2016

Forex technical analysis: EURUSD tests resistance target. Will the sellers enter?

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Or will the pair make a run for the month highs....

The EURUSD is extending the trading range for the day and in the process has moved to the resistance target against the 1.0939-457 area ( see earlier post[1]  - PS the 1.0901 midpoint level  held support on the correction as per the post). The area corresponds  with swing highs going back to December 29.   There  were 3 looks above this high area in the month of January. Each of them failed fairly quickly (see red areas).  The pair is also testing the topside channel trend line. Needless to say the area is key for buyers/bulls and sellers/bears.  A break above should solicit more buying (stops).  There may also should be sellers lining up ag ainst the area (the sell high bears). Those sellers don't have to risk a lot. They likely have stops above the area.   So it is a key moment....


As mention on a number of  occasions, the EURUSD  range for the month is a low 274 pips (it is January 28th). The high for the month comes in at 1.09839 which also is really close to the 100 day MA (at 1.0982).  

There is room to go but there is room to roam should the buyers want to keep the momentum going.  But first things first... there needs to be a break (and stay above) the 1.09457 level.  

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Referenced Stocks:

References

  1. ^ see earlier post (technical-analysis.forexlive.com)

Forex technical analysis: EURUSD tests resistance target. Will the sellers enter? Rating: 4.5 Posted by: Unknown

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