EURUSD – long or short – that is the question

Hi everyone,

to start the week I have a pretty straightforward chart to look at and that is the hourly EURUSD which is showing a very clear resistance level at around the 1.3285 level. It would appear at this stage that the weight of evidence would be to expect a retreat away from this level with the MACD showing a crossover but it’s not all one way traffic by any stretch.

As you can see in the most recent touches of the resistance level there has been a series of higher troughs to accompany the price moves which would suggest that support is growing. The daily chart shows a pretty clear-cut downtrend in play with price fairly recently making another touch of the downtrend line. Importantly though if price breaks through to the upside on the hourly chart there would be another resistance level at about 1.3350 from the daily trend line.

I think this only adds to the broader trend south for the euro at the moment. Keep an eye out though because a drive higher of 100 pips could change the whole game around. If we see daily resistance then we will be looking at confirmation of a descending triangle which will add another paradigm of narrow support and resistance ranges.

DL.

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