EURUSD – Short Term Pressure Signals Showing

Whilst I doubt it would be considered unique or Earth-shattering to express a bearish view of the Europe there are some notable signs that are visible in the market this morning – particularly on the hourly chart. When you look at recent volatility levels you can see that Euro vol has jumped pretty significantly – this is particularly notable on the chart below when looking at the 50 period volatility bands.

You can see that over the majority of the chart that the rate has been skating lower along the -1.25SD band of the 50 hour moving average. At the current retest of this level though the rate is also meeting resistance from the -2.25 SD level of the 200 hour moving average as well. Whilst this is quite a short-term setup to be watching I think that this level may be a very good indicator for all Euro traders to keep an eye on because a break higher from this level may give an early warning of short-term trend reversal.

For traders on the short side though waiting to see if this level is respected and then entering a short EURUSD trade with a stop above the 2 volatility bands that I discussed may give a good risk reward trade.

This entry was posted in Forex, Market, Trading and tagged , , , , , , , , , . Bookmark the permalink.

1 Response to EURUSD – Short Term Pressure Signals Showing

  1. dv34 says:

    I hope the eurgbp drops a little further to 79.20, because I will definitely get long there.. for monthly chart long trade – I think any euro shorts are taking on a bit more risk in the next few weeks as the euro story news is old hat now and already priced in I believe…. I know I’m tired of bad euro news on repeat every few months!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s