FX Reversals: USDollar Breaks Resistance

By DailyFx | July 29, 2014 AAA

DailyFX.com -

Talking Points

  • USDollar Breaks to Highs Above R4
  • Range Resistance Sits at 10,476
  • Price Below R3Signals a False Breakout

USDollar 30min Chart

FX Reversals: USDollar Breaks Resistance

(Created using FXCM’s Marketscope 2.0 charts)

The USDollar has opened the trading day stronger with an early morning breakout. Resistance, as marked above by the R4 camarilla pivot, resides at 10,476. Price has broken above this value twice as the USDollar continues to move towards higher highs above this value. Breakout and trend trader can take advantage of this directional move by looking for opportunities to sell pairs such as the GBPUSD and AUDUSD.

Breakout traders should always be wary of a change in market conditions, potentially signaling a false price break. Utilizing camarilla pivots, a false breakout would be identified by price moving back inside of the predefined trading range. Currently the range is defined by R3 resistance at 10,473 and the S3 support line at 10,466 .A price decline back to this point would signal a change in market conditions, in which traders should consider concluding any breakout trades while, considering entries with the markets new influenced direction.

FX Reversals: USDollar Breaks Resistance

Are you unfamiliar with camarilla pivots and trading intraday market reversals? Increase your trading education with DailyFX! You can continue learning and work on your trading education HERE.

Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your scalping techniques while tracking the market in real time.

Click HERE to Register Now

comments powered by Disqus
Related Forex Analysis
  1. USD/JPY crashes below 106.50, more downside in store
    Forex News

    USD/JPY crashes below 106.50, more downside in store

  2. Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude
    Forex News

    Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude

  3. EUR/USD bulls wake up and drive pair above 1.2800
    Forex News

    EUR/USD bulls wake up and drive pair above 1.2800

  4. Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?
    Forex News

    Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?

  5. AUD/USD Range Endures With Clearer Cues From Candlesticks Desired
    Forex News

    AUD/USD Range Endures With Clearer Cues From Candlesticks Desired

Trading Center