Good morning traders.
Trust you all had a good weekend. Apart from England being ´robbed´ of a famous victory over the All Blacks mine was great lol.
Before we get into what’s on the ticket for next week in the #eurusd I just want to take a look at how our levels performed last week.
The below chart shows the levels I noted during the course of last week. Support and resistance (S & R) is the basis of all forms of trading and for day trading it’s essential to have your charts marked up and to be ready to trade at the areas where there is the highest probability of success.
If you are not at the charts full time, try setting alarms just short of the levels so that when we are getting close you can open up the charts and watch for a short time and decide if you are going to enter.
Alternatively you can set limit orders at the levels and let your orders do the job automatically. Its better if you are watching the price action as it unfolds but using limits in some form or other is a great way to trade. Whatever your circumstances, the S & R levels are where you should be focusing your time and energy.
The Daily Chart
Friday saw another push down in price to close at 1.1334 after coming off the low of the day at 1.1314 which is the monthly open level as you can see on the hourly chart above and below.
For this week it looks like a test of the 1.13 is coming, probably early in the week, possibly Monday morning. (*Update – it has just tested the figure and broken through- keep an eye on nay retests from the underside)
If it pushes through which is suggested by the chart I´ll be watching 1.12 and just below at 1.1190 which is the 61.8 Fib level.
We are likely to get a bounce down here even if it does not become a key support so consider having a limit long set to catch some short term upside.
As mentioned on Friday if we push through here, 1.11 comes into play and then 1.10.
I will be watching the Sunday open carefully and the London Open on Monday to give me a feel for how the day and week might unfold.
The Hourly Chart
There is not a lot I can add in terms of downside levels as there is no real structure under 1.13. In cases like this I will be watching the 1.1280, 50 and 20 levels for any intraday moves as these levels regularly form price point support and resistance in the absence of any structure to trade off.
To the upside we have 1.1350s (and possibly 1.1340) to keep an eye on. Above here the last Monday low close at 1.1366 and 1.14 provide some resistance.
As ever, let price unfold during the London open session as it will give us some intraday structure to trade with.
Have a good week :).