Most of our Forex signals last week were right on target except for Friday when we didn’t send one out due to NFP. Last week was heavily loaded with Fundamental announcements, this week we hope to see better price action and less overall volatility.
Let’s start with EURUSD Weekly chart:
We saw price move up towards the Trendline week before last. That level was held as price failed to break above and continued to move down last week. Last week’s candle even though engulfs the previous week’s candle completely, has a long lower shadow. Ideally a small lower shadow would have been a sign of more sell off this week. Keeping this mind we will remain bearish until price move above the Trendline at around 1.4250 area.
Let’ see what daily chart can tell us:
On the daily chart price has been consolidating in a channel between 1.3870 and 1.3600. Until we see a Breakout in either direction it is hard to get a definite idea about the short term trend.
Keep an eye on 1.3870 are for a possible Breakout or pullback down to 1.3600.
1.3870 is a key area to look for trades based on signals generated by your own trading strategy.
Forex Trading Signal : If price manages to reach this 1.3870 area today then look for longs once price break above and come back re-test it. On the other hand look for shorts on the sign of reversal, targeting lower end of range at 1.3600.
At the time writing this Forex signal, price was looking to head lower already from the open on daily candle, if it continues to move lower then look for shorts until 1.3600 and then wait for Breakout on the lower side.