DailyFX.com -

Talking Points

  • EURUSD Bounces off Range Support
  • Price Breakout Signaled Above 1.3395
  • Prices Below R3 Signal Return to Ranging Markets

EURGBP 30min Chart

FX Reversals: EURUSD Morning Reversal Update

(Created using FXCM’s Marketscope 2.0 charts)

The EURUSD has tested and reversed at multiple levels of support and resistance in early U.S session trading. First price tested S3 range support at 1.3355. Price promptly reversed, on worse than expected U.S Advanced Retail Sales numbers. As the US Dollar sold off, the EURUSD rallied not only through range support at 1.3382 but continued to advance over the R4 breakout value found above at 1.3395. Currently, traders will continue to watch this value to see if the pair will advance on higher highs. A continued price move above 1.3395 would allow positioning in the direction with current market momentum.

At present, price has returned to the R4 pivot. This creates the possibility of a false breakout on further declines below this designated resistance value. Traders should watch for price to return inside of the denoted trading range, to signal a change in market conditions. If bullish momentum fades, traders should then consider exiting any existing breakout based positions.

FX Reversals: EURUSD Morning Reversal Update

Want to learn techniques for trading intraday market reversals? Join Trading Instructor Walker England as he uses a variety of techniques along with camaraill pivots to determine trading opportunities. Registration is FREE for Thursdays LIVE webinar event, using the link below.

FX Reversals LIVE Webinar

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!