Trading Scenario: EURUSD made a new high of 1.3106 by finally breaking above 1.3000 key resistance level, which is our target level on our weekly analysis Click Here . It has still not breached 1.3100 key level to prove that price may extend much higher. Daily bearish trendline is still in place and EURUSD failed to break it yesterday and fell 50 pips, however we cannot conclude it is a reversal keeping in mind as it made a new high.
We consider 1.3000 to 1.3100 as No Man's Land, since price will be in a state of indecision. For us to determine direction of the future price movement EURUSD has to breakout of 1.3000 to 1.3100 range. There is no point in speculating without any direction being established. EURUSD is now in 100 pips critical zone as we mentioned in earlier posts. This zone might be potential reversal zone/resistance zone as well, but we cannot confirm it until price comes out of this zone. As per our suggestion EURUSD is still in a state of indecision.
EURUSD is in a bullish channel, but the momentum seems to be slowing down on this pair. we must see the breach of that bullish channel for any downside extension on this pair.
If EURUSD breaks above 1.3100 doors will open up targeting 1.3237, 1.3300 & 1.3373. Alternatively if it breaks below 1.3000, doors will open up targeting 1.2950, 1.2900, 1.2800 followed by 1.2700.
Entry Strategy: Our strategy is to stay away from EURUSD and see how prices react between 1.3000 to 1.3100 range. We will look for trades once EURUSD breaks above 1.3100 or below 1.3000 level.
Trade Suggestion: If price breaks 1.3100 key level and is able to sustain above that, then go long targeting 1.3273 level, 1.3300 & 1.3373
Alternate Trade Suggestion: If EURUSD breaks below 1.3000, then go short targeting 1.2950, 1.2900, 1.2800 followed by 1.2700.
Trend Direction: Bullish
Trend Reversal Level: 1.2725
Key Support Levels: 1.3000, 1.2900, 1.2820, 1.2700, 1.2600, 1.2500
Key Resistance Levels:1.3000, 1.3100, 1.3300