What happened in the last 24 hrs of the trading session?
EUR/USD: The Euro bounced at around the support trend line highlighted in yesterday's update at 1.13607 and made one attempt to break out at 1.14240 during the European session but was unsuccessful and retreated to 1.13950.
The Euro ended the European session with a high low which is an indication that the pair may have found the bottom of the current pullback and may start to make changes to the direction of the trend.
What is going on now?
EUR/USD: The Euro made only one attempt to challenge the current breakout point at 1.14240. However, the pair has bounced at 1.13950 support and the trend line highlighted on the chart and is now starting to show signs of life as it moves parallel to the support trend line and heads back up. The pair is currently trading at 1.14010 just above 1.13950 support and will need to hold above this point to continue to the upside.
My thoughts on what may happen
1. EUR/USD: The pair may have found long-term support as the current price action indicates a potential change to the direction of the trend could be underway. However, the pair will need to break and hold above 1.14240 to progress to its first target at 1.14798. The pair will also need to hold above 1.13950 support to avoid falling to 1.13607 support.
2. Support: 1.13950, 1.13607
3. Resistance: 1.14240, 1.14465, 1.14798
4. It is good practice to apply a stop loss to all your trades to protect your capital in case the market moves against your position.
5. Estimated target: 1.1478, 1.15330
The short-term view of the price action in the 60 minutes price chart highlights the direction of the trend and the support and resistance price points
The short-term view of the price action in the four-hour price chart highlights the direction of the trend and the support and resistance price points