Major support at 1.30 for EURUSD

Good day all,

In my last few posts on EURUSD, I highlighted some chart patterns. The latest were two head and shoulders patterns (one was an inverted one). The EUR/USD currency pair decided it was not going to surge up or down; instead, EURUSD continued trading in a range of 1.30 and 1.33. Of course, in the world of forex, a 300-pip range is enough volatility to make money out of. In the last week alone, EURUSD slid down quite abit. Further downside will put us nearer to major support at 1.30. I peg suppotr at 1.30 for a number of reasons. One, recent price action tells me so quite obviously (green line in chart). Two, a fibonacci retracements study I did quite a while ago has the important 61.8% level at around 1.30. Three, 1.30 seems like a “round/whole number” psychological level.

As the days go by, I will be ready to short EURUSD if we get below the important support at 1.30. Downside simply means that the huge downward parallel channel is holding steady. Whatever the fundamental reasons are out there, from a chart point of view, the recent selling pressure is the parallel channel acting as resistance for any upside. While  we are inside the channel, I will continue looking for short opportunities.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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