The Euro Hit a Wall and More Could be on the Way.

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By Casey Stubbs— Follow Casey On Twitter

Eur/Usd

Last Week we saw the Euro do a large about face, right when many analysts were predicting higher prices in the Eur/Usd. Despite all of the up and down news that has been revolving around the Eur/Usd. The pair has traded in nice clean trading patterns. I want to point out to you the weekly chart, every week I go through all the weekly charts in order that I have an idea of direction of the pairs I will be trading. I use candlestick patterns to help me identify direction in conjunction with support and resistance levels.

Here is a chart of some key highlights I that I noticed when Studying the weekly chart.

Forex Weekly Chart

Forex Weekly Chart

Next I drop down to the daily and once I see that I will get more clues as to how I want to trade the pair this week.

Eur Usd Daily Chart

Eur Usd Daily Chart

IF there is a bounce off the daily level to the upside then we have to watch the weekly resistance level so if that happens we will most likely be in range trading conditions for some time.If the price breaks that support and closes lower look for a breakout trade to the downside. I recommend that you read the weekly Outlook for the Eur/Usd by Forex Crunch to assist you in developing your trading plan for this week. Also Look at the Eur/Usd Technical Analysis at Forex Abode. One last place to get some great analysis is the Proactraders Blog, I do a lot of my own analysis but I like to read others as well to keep myself sharp and also to build off of others work.

Aud/Usd

 

There is another pair I want to breifly mention here and that is the Aud/Usd. This is one of my favorite pairs along with the Nzd/Usd because they have both been very easy to trade in the last few years because of nice wide swings that are great to ride. Right now however we have been stuck in a range which presents a great opportunity for a breakout trade for the patient trader. Lets take a look at the chart.

Aud Usd Break Out

Aud USD Break Out Is Coming

Keep your eyes on that because the tighter the range becomes the easier it is to trade a breakout.

 

Personal Recommendation:

I am closing with a recommendation for you all to read the Forex Ten Commandments! I read it and found out that I was disobeying some of them. What about you?

 

  • Rdm1

    Oops,I should have mentioned that analysis was on the Euro Daily

  • Rdm1

    Hi Casey,always good to read your comments.Well whatever the Bigdogs are playing at regarding the Euro I am afraid we have to stick to our education and wait for the bounce or retest before we get on board.We are still making higher highs and lows on the daily and it would be good to see a bounce around the 1.3150 area then head North to the 1.3600 area.towards the outer trendline.As you know ,once we break an inner trend line past experience tells us that we can go to the outer. Should it close beneath the 1.2970 area and we get a decent retest we may be in a different ball game.

  • david

    Thank you for your tips ,easy to follow no b/s.
    Regards
    David

  • JosiahBiddle

    I truly appreciate this technical analysis, particularly on the EUR/USD. I like how you used multiple time frames, as well as where you placed your support and trend lines. However, I was curious about where to take profit? If it were to break 1.3185 support level how far would you let it run before you took profit? Would you consider taking it at 1.2975? Or would you let it run down to 1.2625? If the support of 1.3185 holds do you intend on putting in a long and taking profit at 1.3485? 

    Also, I would like to thank you for the shout out to Top Ten Forex Commandments! Your input is greatly appreciated.