EUR/USD approaching support level, possibility of a Long trade
Overview- EUR/USD has been in a downward trajectory for almost
3 months now starting January'2021. Recently, price plummeted to 1.17 level.
However, there has been a modest recovery over the last 2 days owing to USD weakness.
Analysis - As you can see from the chart, price is clearly below the 100 day
moving average, which indicates the trend is tilted towards the downside. Current recovery
might be short lived as 1.19 level might offer significant resistance to any upside move.
1.1630 level, on the other hand is a strong support level.
Probable trade set-up - Based on the above analysis, traders can take short
positions between 1.1920-1.1950 provided there are price rejections at that level.
If the recovery is short lived and EUR/USD drops to 1.1630 level, I will look for
buy entries.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
3 months now starting January'2021. Recently, price plummeted to 1.17 level.
However, there has been a modest recovery over the last 2 days owing to USD weakness.
Analysis - As you can see from the chart, price is clearly below the 100 day
moving average, which indicates the trend is tilted towards the downside. Current recovery
might be short lived as 1.19 level might offer significant resistance to any upside move.
1.1630 level, on the other hand is a strong support level.
Probable trade set-up - Based on the above analysis, traders can take short
positions between 1.1920-1.1950 provided there are price rejections at that level.
If the recovery is short lived and EUR/USD drops to 1.1630 level, I will look for
buy entries.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.