Good Day Traders!
By now you have probably realized that EurUsd has been trading within channel for the past few weeks. At present price is retesting the bottom of the channel along with previous support. Many Buyers will be looking at this as an opportunity especially since it is near the 200 simple moving average. However, i am not convinced that the price of this pair will go up. Most likely this is a trap for buyers for the market to push down. A break below the channel and 200 MA would signify a huge move to the downside. I will be looking for price to break below and leave the 1.1790 level and retest this support as resistance, taking a sell position. if that does not happen and price continues rejecting and starts a push to the upside i will be entering on a lower time frame on a retest of a recent price level.
By now you have probably realized that EurUsd has been trading within channel for the past few weeks. At present price is retesting the bottom of the channel along with previous support. Many Buyers will be looking at this as an opportunity especially since it is near the 200 simple moving average. However, i am not convinced that the price of this pair will go up. Most likely this is a trap for buyers for the market to push down. A break below the channel and 200 MA would signify a huge move to the downside. I will be looking for price to break below and leave the 1.1790 level and retest this support as resistance, taking a sell position. if that does not happen and price continues rejecting and starts a push to the upside i will be entering on a lower time frame on a retest of a recent price level.