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 Daily I would like to look at the EURUSD and how we can potentially trade it this Tuesday.
Yesterday we saw a huge move to the upside in trading and a bull move which started for the EURUSD in the 1.10 region and has continued to make a 700 pip advance in less than 1 week of trading.
The chart below really highlights the scale and speed on the advance.
Technically speaking the EURUSD has broken some very important resistance levels and now traders will be looking for either some retrace lower to enter buy positions into the new trend or alternatively a failure towards the high that was made yesterday.
Looking for valid levels of resistance is not an easy task with such a vast move that has broken the recent ranges and trading well above it’s normal levels.
The chart below shows us 2 potential trades.
The shorter time frame chart above shows us that if we do want to try a swing sell position then 1.1650 would be a level to start to look for bull weakness and has some very healthy risk reward to the downside.
For those looking to buy into this up move the 1.1480 support levels offers a valid entry point with the 1.1350 support level clearly marked as the next point traders will be watching should that come into play.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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