Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
For this edition of DecaPip I would like to turn my attention to the EURUSD.In yesterday’s column I mentioned that the US Dollar was looking for a correction to the downside and sure enough it came as expected.
Breaking down the EURUSD we have potentially made a near term bottom and have made a key reversal candle on the Daily time frame.
I have 2 set ups that currently look attractive as per this morning’s opening prices.The first would be to initiate a Buy position if we can get a re-test of price under the 1.1000 level.The logic behind this is that we then see if strong buyers want to step in and take this to higher levels and secondly we are playing the near term set up of US Dollar correction with a fantastic risk reward if we are correct.
The second potential way to play this short term would be to look for a 30 minute close under 1.1080 and take advantage of the short term downside if it is heading for under 1.1000 again.
Below we can see the 30 minute chart and a close under 1.1080 would be an attractive short play with good risk reward.
On the Daily chart below we can see that 1.0951/52 could offer an attractive risk reward for new Buy bids from EURUSD.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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