Trade Scenario: As we look into the charts today, EURUSD made a big drop yesterday and continued its fall today as well and made a low of 1.2780. EURUSD now has to find its stability around 1.2775 to 1.2750 region, this support region will place a critical role on this pair.
What we are seeing now is a correction from its rise from 1.1875 to 1.3333. The region which we mentioned above ( 1.2775 to 1.2750 ) could potentially give a very good support for EURUSD, bullish trendline support also comes into picture in that same region.
When we consider few more factors, EURUSD breached our weekly trend reversal level, which is actually a caution for us to take any more trade on this pair this week. Keeping this in mind, we will be cautious on taking trades on this pair.
We will be looking to sell at 1.2910 level, if we see any reversal. Potentially this pair might face selling pressure at that region, breaching that level EURUSD could rise to 1.3000 level.
Entry Strategy: Selling rallies in downtrend at our suggested resistance levels.
Trade Suggestion: we will go short at 1.2910 level, if we see any reversal and price holds below that targeting 1.2800 & 1.2750
We might look to sell at 1.3000 if price was able to reach there, targeting 1.2950, 1,2900, 1.2800, 1.2750.
Alternate Trade Suggestion: Aggressive traders may look to go long after the break of 1.2910 targeting 1.2950 & 1.3000.
Trend Direction: Bearish
Trend Reversal Level: 1.3050
Key Support Levels: 1.2755, 1.2600, 1.2430, 1.2190.
Key Resistance Levels: 1.2910, 1.3000, 1.3055, 1.3120