EUR/USD Ready to Breakout

Here’s a simple look at my 4 hr chart where I only have my trendline and fib levels showing. The fact that we have the 61.8 fib level syncing up perfectly with a nice round price level like 1.3000 shows that we are at a critical level (I believe) for the euro. For 9 days in a row now, that 1.3000 price and 61.8 fib level has been tested and yet not broken on the daily chart as well. There is LOTS more resistance levels above than support levels below, leading me to guess that the rally we’ve been riding high on is at a plateau and soon we’ll see a reversal in trend. Above the 1.3000, we have

Continue reading–>EUR/USD Ready to Breakout

EUR/USD Finds Resistance at 61.8 Fib Level

Well last week I posted the graphic showing how the 50 fib level provided resistance to the strong rally we were seeing all week and reminded everyone of the powerful tool that fibonacci levels are to trading. Well now the next level up, and one of the most crucial levels to know about, 61.8 has provided a stronger source of resistance by capping any rallies above it three days in a row. We have now seen a sell-off that currently finds support at the 50 fib level (support turned resistance). The pair is now consolidating in a tight range between 1.2790 and 1.2830. Whichever of those two levels is broken first, that’s the next entry setup for you to take

Continue reading–>EUR/USD Finds Resistance at 61.8 Fib Level

EUR/USD Meets Resistance at 50% Fib Level

I failed to realize this yesterday, so here is an actual image to show that the recent stall in this most recent rally occurred right at the 50% fib level on the daily chart from this year’s April to May swing high and low. This is why you need to know how to use fib.’s my friends! Also Adding to the resistance was our Weekly R1 which price action broke but hasn’t closed above on the hourly, and the daily R1 just above there (not seen in this image).

EUR/USD Gets Extreme

The Euro reached a 2-month high after breaking above 1.2700 and continuing up to 1.2737 reaching the highest price since May 12. As I write this, my smaller time frames (hourly and 15 min) show extreme overbought conditions and it’s a safe bet that we will see the EUR/USD trigger some bearish corrective movement now and into the close of New York’s session. Most analysts that I keep up with say to watch for 1.2660/70 area to be the key: if it’s under, corrective movement could extend close to the 1.2600 area, while if price holds above the level, price action should resume bullish trend.

I traded two classic setups according to my strategy and using the 1 hour chart. First,

Continue reading–>EUR/USD Gets Extreme