Trading Scenario: As per our weekly analysis EURUSD proved to be bullish as it retested 1.3000 key level. Now the question is whether EURUSD Bulls can really win to prove the Stress Test data is real?
1.3000 level is very important in terms of future price movement of EURUSD. If it can really pass through this stress test, price is likely to get momentum and go on towards 1.3660 level. If it happens then it will prove that current downtrend is complete and new journey will start on EURUSD for weeks ahead.
Let's look into Intraday picture on EURUSD, it is now stuck in a narrow range from 1.2700 to 1.3000 which is 300 pips. The key level of resistance for this pair is 1.3000, a very big test again where this pair failed twice last week. It is now ready for another test. Bulls seems to have much strength, but at 1.3000 level bears are giving a tough fight. It is now traveling in a bullish channel and waiting to come out this narrow range.
If price breaks 1.3000 key level and was able to sustain above that, 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 that level, then the road will be cleared targeting 1.3300, 1.3500 & 1.3660.
If this pair fails to breaks 1.3000 stress test level, it is likely to fall to 1.2700 key support level comes in before making any other move.
Entry Strategy: Buying dips in an uptrend at support levels, while market trades above trend reversal level 1.2725
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