EUR/USD stages big bounce from low support – lines to

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The ECB’s QE announcement sent EUR/USD down and down, but forex trading is never a one way street and after reaching a very low point, the pair is staging a nice recovery of over 150 pips.

What’s next for the pair? The big event ahead is the elections in Greece that happens on Sunday when markets are close. In the meantime, here are the lines to watch on low ground:

First, the chart, explanations below:

EURUSD January 23 2015 technical 30 minute forex chart currency trading euro dollar

The pair is trading at 1.1280 at the time of writing. It managed to climb over the round level of 1.12 that provided temporary support earlier in the day. Below this line, the new 2015 low was set at 1.1113, just two pips above 1.1111.

Why is this number with all identical digits important? The answer lies in the inverse pair: USD/EUR which is at 0.90 when EUR/USD is at 1.1111. And more importantly, the pair was supported around these levels back in July 2003 and this was resistance in March of that year.

Further below, the very round number is the next line of support and it is followed by 1.0870.

Looking up, we have 1.1313 as immediate resistance: it held the pair temporarily before the recent fall. 1.1373 is the next line of resistance: it was the November 2003 low.

Further above, the pre-QE 2015 low of 1.1460 is weak resistance before teh round level of 1.15.

For more, see the EURUSD prediction.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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