December 8, 2022

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EURUSD backs off from upper resistance target

1 min read

The swing area from 1.18507 to 1.18568 stalled the rally

The EURUSD has backed off an upper resistance target that comes in at 1.18507 to 1.18568.  I outlined that level in an earlier post here and here. The high price today stalled at 1.1856.  Target reached. Sellers leaned.
The swing area from 1.18507 to 1.18568 stalled the rally

The price has moved lower and the pair currently trades at 1.1843. That it is also below the high price from yesterday at 1.18446.

There is a chance that sellers probe lower especially if the high from yesterday (and the 1.18507 level too) starts to find sellers against the level.

Looking at the 5 minute chart below, the pair tried on a few separate occasions to get above the 1.18568 level (see green numbered circles in the chart below). The last attempt saw the price move down to test yesterday’s high, bounced modestly back up to the 1.18507 level, but found sellers against the low of that swing area from the hourly chart.

The price has now moved below the high from yesterday and looks toward the 100 bar moving average on the 5 minute chart at 1.18372 currently (moving higher) a move below the 100 bar moving average could see additional profit-taking/selling.

EURUSD on the five minute chart

The pair is not running lower.  However, with the target finding resistance sellers, traders have to be aware that the momentum may start to fade a bit.  Time will tell
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