EURUSD approaching levels we haven’t seen since 2018. DXY falls to 92.30 with room to drop further as FED Chairman Powell dovish on interest rates. Covid directly impacting parts of the US economy that’s affecting millions of jobs.
EURUSD holding 1.18800, and sighting levels set in August 2017 – $1.200
- 1.18800 extremely strong level – Old resistance = New support
- Broken and holding above key level 1.18800
- Reclaimed 50 EMA with ease
- Well above 200 EMA
- Round number 1.200 in sight for the first time in 2 and half years.
- Current consolidation between Fibonacci 78.6% and 61.8% of last sell off range – Break below could see price test 50 EMA
Support = 1.1880, 1.18400, 1.1800
Resistance = 1.19300, 1.19600, 1.200, 1.203
- Optimal Entry – Price dropping to 1.18400 zone would produce best reward to risk ratio
- Accumulation Zone between 1.8400 and 1.188 – Watch these levels for any candle reversal signals for entry. Examples seen below in EURUSD 4 hour time frames.
- Going down to the 1 hour time frame will also produce these types of signals
- If price fails 50 EMA and hold below, this can be seen as bearish and position can be closed.
- If a break below 1.1800 and hold suggests price could meet the 200 EMA
Entry at 1.18400 / Exit at 1.1780 = To target 1 1.201 = 3x Reward to risk
Entry at 1.18400 / Exit at 1.1780 = To target 2 1.209 = 5.4x Reward to risk
Entry at 1.18800 / Exit at 1.17980 = To target 1 1.201 = 2x Reward to risk
Remember as a trader it is your job to mitigate the risk, and only trade structures that provide high probability and great reward to risk ratios.
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