I think this recent sell off in Euros is just a correction and as we still have not broken through any key levels on the downside we would still at this point buy into weakness...
Trading with Support and Resistance
From a strategic point of view, support and resistance levels represent smart places to anticipate a reaction in the price of an asset, and therefore represent a basic tool in technical analysis.
Numerous traders use them, but the diversity in application and integration of support and resistance analysis tell us that charting is definitely not an exact science and more of an art.
One of the most common mistakes that new traders make is buying too close to a line of resistance or selling too close to a line of support. In this page we provide enough set-ups and real time examples, to make sure you thoroughly understand this simple yet important dynamic.
Support and Resistance in EUR-based pairs
Identifying Supply and Demand
There where the difference between the number of buyers and sellers get more remarkable, it tends to form a Support or Resistance level. Your next logical quest will be to identify them on a price chart.
Historical and potential Support and Resistance levels, can lead to several constructs: horizontal lines and dynamic trendlines are the most used ones and can be based on significant highs and lows. Lines are also used to delineate price channels as well as classical chart figures such as triangles and wedges.
Some technical indicators can act as potential Support and Resistance levels, such as moving averages, Pivot Points and Fibonacci extensions and retracements which are commonly used in Elliott Wave analysis.
Round numbers - those quotes ending in 00 or 50- and emotional spikes are often perceived as Support and Resistance levels.
When these levels encompass a larger area on the charts technicians speak of a Support and Resistance Zone.
JPY-related Support and Resistance
Key Points: USD/JPY rallies due to an uptick in US Bond Yields. Pair reaching a key reversal point. Watch for a break of 106.20 to confirm a bearish bias. [...] the USDJPY has rallied strongly and is nearing a challenge of the 107.00 handle. However, there are some concerning technical signals starting to appear which could see the pair tumble in the coming days.
GBP-based pairs Support and Resistance
gbp/usd supply and demand
Support and Resistance in related markets
Prices are heading towards the 200-day moving average which would likely act as support and restrict a further decline. This support level lies at 1.3074 and coincides with the 61.8% Fibonacci retracement level of the rise from 1.2762 to 1.3587. Below this, the key 1.3000 level will also act as support.
We start with resistance at 1.3551. 1.3433 was the high point in October. 1.3351 is next. 1.3219 is an immediate resistance line. 1.3124 is a weak support line which could break this week. 1.3003 is protecting the symbolic 1.30 level. It was last tested in mid-October. 1.2922 is next. 1.2804 is the final support line for now.
With the very strong decline in the price of Gold on Friday, everybody is wondering where is bottom here now. Well, it is kind of hard to estimate that as we run out of the horizontal supports and Fibonacci retracements. What comes with help here are the trendlines and what is very interesting, they cross in a psychological barrier of 1100 USD/oz.
Streaming Live Rates and Pivot Points