• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Technical Analysis

Reversal Keeps Important Channel in Play

Forex Tips by Forex Tips
September 2, 2020
in Technical Analysis
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


EUR/USD Technical Highlights:

  • Notable reversal keeps channel structure in play
  • Using it to shape general trading bias

Euro continues to stay within confines of channel

The EUR/USD is at an interesting spot within a robust technical structure. Long-term the Euro appears to be poised for higher prices still, perhaps up to 12500, but price action suggests some more near-term backing-and-filling may develop before that can happen.

Yesterday’s price behavior was marked by a daily reversal off the top off a neatly forming upward consolidation channel. The upward sloping channel, instead of acting as a consolidation pattern, could mark waning momentum and a topping pattern, but we will continue to give the benefit of the doubt to the upside as it still looks constructive.

However, we don’t need to predict or speculate what the outcome will be, just follow the levels and eventual breaking of the pattern.

The key reversal at the top of the channel has EUR/USD set up for a dip back to the lower-end of the structure (on that journey now), where support lies around 11800. There is also a trend-line (lower parallel) rising up from May that could come into confluence and strengthen support.

This would be ideal for determining a make or break point. A hold and turn higher keeps the top-side well intact, while a break below support could indeed mark the beginning of a significantly larger retreat.

Would-be longs could use the bottom-side of the channel for potentially solid risk/reward set-ups, while would-be shorts may be best served for this support to break.

Top Trading Lessons

Top Trading Lessons

Recommended by Paul Robinson

Find Out the #1 Mistake Traders Make

EUR/USD Daily Chart (uptrend, channel/trend-line)

EUR/USD daily chart

EUR/USD Charts by TradingView

EUR/USD 4-hr Chart

EUR/USD 4-hr chart

EUR/USD Charts by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX





Source link

Share76Tweet47

Related Posts

EUR/USD Pulls Back from July High as EU Splits COVID Recovery Fund

EUR/USD Short-term Chart Setting Euro Up for a Move

by Forex Tips
April 13, 2021
0

EUR/USD Technical OutlookEuro wedge forming on the 4hr/1-hr chartsLevels and lines to watch in the near-term EUR Technical Outlook:...

Tests Critical Trendline Resistance Level

AUD/CHF, NZD/CHF, EUR/CHF Chart Setups

by Forex Tips
April 13, 2021
0

Swiss Franc Technical Forecast – Talking PointsAUD/CHF at risk of further downside after a trendline breakNZD/CHF continued downside likely,...

Pound Rebound to be Short Lived- GBP/USD Levels

GBP/USD April Range Set on Support- Cable Levels

by Forex Tips
April 12, 2021
0

Sterling Technical Price Outlook: GBP/USD Trade LevelsSterling technical trade level update – Daily & Intraday ChartsGBP/USD carves April opening-range...

Aussie Support Grind- AUD/USD Breakout Pending

by Forex Tips
April 12, 2021
0

Australian Dollar Technical Price Outlook: AUD/USD Weekly Trade LevelsAustralian Dollar technical trade level update - Weekly ChartAUD/USD sell-off plunges...

Dollar as a Safe Haven or Source of Global Instability?

DXY Looking Lower Still in Absence of Support

by Forex Tips
April 12, 2021
0

USD Technical OutlookUS Dollar Index (DXY) slowly working its way lower towards next level of supportPrice slipping below 200-day,...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.