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Talking Points
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EURUSD Hovers Near Central Pivot
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Range Resistance Sits at 1.3445
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Price Below S4Signals a Trend Continuation
EURUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The EURUSD has opened the trading week within a 30 pip trading range. Resistance, as marked above by the R3 camarilla pivot, resides at 1.3445. Support is currently held below at 1.3415 as marked by S3 support. Range traders will look to take advantage of prices reversals inside of the range as the EURUSD drifts towards either of these pre-defined values.
In the event of increasing volatility, the EURUSD could be exposed for a breakout scenario. Utilizing camarilla pivots, a breakout would be signaled by price moving above R4 resistance at 1.3460 or below S4 support at 1.3400. Price action moving below 1.3400 would signal a short term move towards lower lows, and indicate a resumption of last week’s trend. At this point the market would be signaling a change in market conditions and, range trading should be concluded. Traders can then consider entries with the markets new influenced direction.
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--Written by Walker England, Trading Instructor
To contact Walker, email wengland@fxcm.com. Follow me on Twitter @WEnglandFX.
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Previous Market Setups:
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original source