EUR/USD Analysis for Week 28
Updated
DISCLAIMER: Hi everyone, this is just a log book for me on applying everything that I have learned and continue to learn as I go along. That being said, I do not advise you to base your trading on these "ideas".
This week I tried taking a few trades on this pair and not with any good results. Didn't completely loose all my profits for the week but I came through only with .59% this week because of this pair. So here we go lets try and make sense off all this noise. To me EUR/USD seems to be one of the most volatile pairs, so making sense of it all will be a challenge I hope to conquer.
Background:
So I want to try and use the USD Index chart as a tool to help me see a bigger picture as to what the dollar is doing. What we see here is that the dollar has been dropping and has reached a support area from April 29th and May 2nd of 2016 of 92.53. The price retraced and hit resistance around 94.12 and keeps rejecting it on the daily chart.
Daily:
Ok so as we saw in the USDX chart the USD dropping means EUR/USD comes up. Euro gaining strength and Dollar weakening. But it seems to have peaked at 1.19103.
4hr:
Lets take a look at the 4hr. Here we see a little better how the price has retraced after its peak at 1.19103. I've drawn a descending trendline showing its lower lows. But the important support level is at 1.16889. Where we see that this past week the price was unable to break. And also where I lost some money. The last move that the pair did was up to the trendline and to a resistance area I have drawn at 1.17723.
So what I will look for this week is for the price to break out of that box between 1.16889 and 1.17723. I think thats about it for this pair. It's still hard for me to get my head around this pair seeings as how its high volatility but as I said its a pair I need to master.
This week I tried taking a few trades on this pair and not with any good results. Didn't completely loose all my profits for the week but I came through only with .59% this week because of this pair. So here we go lets try and make sense off all this noise. To me EUR/USD seems to be one of the most volatile pairs, so making sense of it all will be a challenge I hope to conquer.
Background:
So I want to try and use the USD Index chart as a tool to help me see a bigger picture as to what the dollar is doing. What we see here is that the dollar has been dropping and has reached a support area from April 29th and May 2nd of 2016 of 92.53. The price retraced and hit resistance around 94.12 and keeps rejecting it on the daily chart.
Daily:
Ok so as we saw in the USDX chart the USD dropping means EUR/USD comes up. Euro gaining strength and Dollar weakening. But it seems to have peaked at 1.19103.
4hr:
Lets take a look at the 4hr. Here we see a little better how the price has retraced after its peak at 1.19103. I've drawn a descending trendline showing its lower lows. But the important support level is at 1.16889. Where we see that this past week the price was unable to break. And also where I lost some money. The last move that the pair did was up to the trendline and to a resistance area I have drawn at 1.17723.
So what I will look for this week is for the price to break out of that box between 1.16889 and 1.17723. I think thats about it for this pair. It's still hard for me to get my head around this pair seeings as how its high volatility but as I said its a pair I need to master.
Note
Hi everyone, so the price . finally broke out of that box it seemed to be in. I had drawn a small ascending trendline that the price seemed to have been following. I felt that the price was just not going to make lower lows because of that trendline. So here is where I left it yesterday at the blue vertical line:It seemed like a strong buy seening that the price was following that ascending trenline. And here is how I woke up to it this morning and what its done til' now:
What I think was maybe a lack of confidence that resulted from several loosing trades with this pair.
Disclaimer
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