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20 Mar 2014
EUR/USD at role reversal level 1.3820 - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies, notes that EUR/USD is now sitting above a key 'line in the sand' at 1.3820.
Key Quotes
"I never really felt comfortable buying EU above 1.39, and I think today demonstrates this. Post FOMC, the USD strengthened, with the impulsive selling heading into the close. The pair is now sitting above a critical 'line in the sand' as its held above it for 9 days now. This support level at 1.3820 was the several month resistance, so now its being tested as support (role reversal level)."
"For now, the pair is holding, but it hasn't fully shown (except for a 1hr pin bar) that it wants to hold. Look for the next few hours of price action to see if it leans towards breaking down, or building up. If you are a bull, now is your chance to get in with a tight stop below the daily lows. Bears can wait for a breakdown below the level, and then a pullback setup to get short.
Key Quotes
"I never really felt comfortable buying EU above 1.39, and I think today demonstrates this. Post FOMC, the USD strengthened, with the impulsive selling heading into the close. The pair is now sitting above a critical 'line in the sand' as its held above it for 9 days now. This support level at 1.3820 was the several month resistance, so now its being tested as support (role reversal level)."
"For now, the pair is holding, but it hasn't fully shown (except for a 1hr pin bar) that it wants to hold. Look for the next few hours of price action to see if it leans towards breaking down, or building up. If you are a bull, now is your chance to get in with a tight stop below the daily lows. Bears can wait for a breakdown below the level, and then a pullback setup to get short.