We all know the dollar has accomplished quite a comeback on the heels of positive jobs, and retail a sales data, the question is will it continue? Looking at the EUR/USD this weekend the currency appears to be at a decision point. If the euro is going to find its footing technically and avoid a full blown assault by the dollar it needs to happen soon. Today’s EUR/USD chart shows the currency is clearly poking at a demand level which corresponds with a minor trend line on the daily chart. The top of this demand zone sits at $1.46 which provided support for the recent run to $1.51. If the euro has hope of a comeback, this is a demand zone of interest. If not, I think the euro could be vulnerable to fall further toward support at the bottom range near $1.4450.
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Going for the bottom….still think this drops through the end of the year overall…
Just my humble opinion…but I am ready to trade this whichever way it goes
There is a GAO from the Friday 2nd Oct to Sunday 4th Oct and this has not been closed since then. The levels I have are 1.4575 bottom of gap and 1.4589. The penetration of this GAP was only 4 points. The last time price was here it went north. I agree it is a decision point as looking it from the top down it is close to a short covering reversal and could go a long was south. By the way I’m in to go North with an entry at 1.4581.
Hi Ryan,
You can see the Sunday GAP on the Chart you posted.
Cheers
Howdy!
Yeah, I traded this long on Sunday night for a few pips, but I’m not sure on it right now. My guess is, it will break long to test the supply breakout from last week around think it will break long to test the breakout level from last week up around $1.4730. Not my favorite setup right now.. checkout AUD/USD, I just sent a tweet about that one.
Best of luck,
Ryan
Ryan,
Any thoughts on USD/JPY approaching a supply zone?
Hi Aaron,
That is a good observation, I’ve kept an eye on that supply level as well. There is also a descending trend line on the daily chart in that area. The issue in my opinion is dollar correlation; it seems dollar has returned to behaving logically across the majors ever since the NFP data this month. USD/JPY is gaining strenght along with other dollar pairs instead of falling against the yen. Keep an eye on it, but personally I’m pro dollar right now, at least short term.
Best of luck,
Ryan