EURUSD is finding pressure from Bears in 1.3000 to 1.3100 zone. As we discussed in our earlier analysis this zone is very critical. EURUSD was able to make a new high yesterday and dropped below 1.3000 level, which signifies selling pressure in that zone. We must be very cautious in this zone while making any decisions. We also have triple tops on EURUSD at 1.3000 level, which is also a sign of bearishness creeping in.
EURUSD still stuck in 1.2700 to 1.3000 narrow range. It has to break out of this range for any momentum to get in place and which will decide future price action. This consolidation can also lead to big move in the market. EURUSD is now approaching near to daily bearish trendline around 1.300 to 1.3100. If we further look at 1.3000 level, it is a 61.8% level of the fall from 1.3691 to 1.1875, which is another important factor for the point of reversal. EURUSD still in bullish channel, so at this point we cannot conclude that downtrend has been established.
If this pair fails to breaks 1.3000 stress test level, it is likely to fall to 1.2900 where this pair has significant support and also support from bullish channel, breach of this bullish channel support may push the price to 1.2700 key support level before making any other move.
Important Note: Weekly closed as Doji, Daily closing is also a Doji. Be mindfull trading inbetween 1.2900 to 1.3100 range.
Suggestion: Our suggestion is to stay away from EURUSD and see how prices react between 1.2900 to 1.3100 range. We will look for trades once EURUSD breaks above 1.3100 or below 1.2900 level.
Aggressive Trade Suggestion: If price breaks 1.3000 key level and is able to sustain above that, then go long targeting 1.3100 level, where another key test comes into play. At 1.3100 level the daily bearish trendline comes in, where EURUSD will face significant resistance. If it breaks this level, then the road will be cleared targeting 1.3300, 1.3500 & 1.3660.
Alternate Suggestion: Consider going short if 1.2900 level is broken targeting 1.2820, 1.2750 & 1.2700.
Trend Direction: Bullish
Trend Reversal Level: 1.2725
Key Support Levels: 1.2900, 1.2820, 1.2700, 1.2600, 1.2500
Key Resistance Levels:1.3000, 1.3100, 1.3300