- EUR/USD stayed at or beneath parity solely briefly
- The 1.036 area and 1.050 area are attainable resistance ranges
A Temporary Second Beneath Parity
Life for EUR/USD at or beneath parity up to now has been quick and candy. Slightly than punch, the pair gently lapped previous parity between 12 and 14 July, earlier than receding again above that stage in latest days. Nonetheless, the 14 July swing low of 0.9952 stands out within the wake of the latest retracement increased in value. In the meantime, the best of technical indicators, such because the 200 day by day and weekly exponential shifting common are tilted downwards; the present value of EUR/USD is properly beneath the shifting common line. This, alongside the absence of that massive capitulation second in EUR/USD, the place sellers utterly exhaust themselves on large quantity, in my view, dangers an additional transfer past the newly established precipice of 0.9952.
In consequence, I’m preserving my eyes peeled for enticing ranges to re-sell EUR/USD, on the opportunity of additional retracement. Till value makes a sustained break above the 30 Might swing excessive of 1.07870, which might mark a structural shift from downtrend to uptrend, I’m extra apt to take a look at alternatives to promote EUR/USD slightly than purchase. I’ve bought my eye on the important thing Fibonacci retracement ranges between the swing excessive of 1.07870 and 0.9952 swing low as attainable ranges for the present corrective transfer to reverse. These embrace the 50% Fibonacci retracement stage of 1.03685, and likewise the 1.05 area the place there’s an excessive amount of previous congestion and quantity, amongst others.
Protecting a Tight Lid on Danger
Towards these key Fibonacci ranges, I’m searching for sturdy indicators of attainable reversal, whether or not they be candlestick patterns, conventional chart patterns, or different related alerts. As well as, I’ll choose my place sizing towards the diploma of relative quantity that validates that potential. I all the time can measurement up my place by scaling in at a later date. However primarily based on earlier quantity, I wouldn’t be trying to do this till value has efficiently damaged beneath parity once more and draw back momentum seems to be set to proceed.