Euro projection for Friday
The EUR/USD had strong support today. Opening up just under the previous day’s high resistance and the Pivot midpoint as support the market consolidated and broke out on high buying volume. Traders were mostly long from 1.2625 to 1.2630 area which is going to be key going into Friday’s trade.
As you can see from the chart below traders defended the balance point area of 1.2625 buying at this level each time and holding firm as support. Today’s
rally stopped at each hours statistical high signaling cautious buying at these levels. The 1.2650 area near the S1 pivot acted as major resistance for today’s trade.
Friday’s Trade – A break above 1.2660 is bullish for the EUR/USD and expect support near 1.2625 to 1.2630 area (where most traders have positions from Thursday. Shorts are likely to cover at this level the first and second time down to it). Look for major support from the 1.2590 low area to 1.2610.
Chris Donnell is a chief technical strategist at
www.forexyourself.com. He has over 9 years of experience trading for a living. He is also the developer of TopGun software which is available exclusively through
www.forexyourself.com. Please email all questions to Chris to
chrisd@forexyourself.com.