EUR/USD Support Resistance Analysis

Discussion in 'Forex' started by zec83, Jul 24, 2011.

  1. zec83


    Hi all, the information enclosed are for educational purposes only. Losses at your own responsibility.

    Please refer to the attached charts ( Weekly (W1), Daily (D1), Hourly(H1) and 5min (M5)) in the zip file.

    Weekly - Currently Price is in an overall Weekly up channel.

    However Intermediate downward resistance is still intact and providing downward pressure on prices.

    Attempt to bring price below 1.4000
    was sharply rejected.

    Price is now operating in a Weekly Range of 1.5000 - 1.4000, with 1.4560
    as the pivot point.

    Daily- On the Daily Chart, we can see that 1.4000 was well supported, with prices below 1.4000 strongly rejected.

    1.4560 is a critical pivot point. Should price breaks out of intermediate downtrend line and is able to break and hold above 1.4560, buying interest will start to come in.

    Breaking of the pivot will see the market aiming for 1.4950s, which is about 390 pips away.
    In other words, above 1.4560, bulls will have 390 pips of room to move prices higher.

    Daily Buy: A buy can be considered above the price of 1.4560s with profit target at anywhere 1.4900s.
    Buy@ 1.4572, Take Profit 1.4910-40, Stop Loss 1.4595s

    Hourly- Price is in an hourly up channel.

    Priced formed a minor reversal pattern against 1.4435 and currently price is in an intermediate downtrend.

    Downward pressure is expected to continue for a while with minor support expected 1.4320 and critical support at around 1.4295.

    In order for hourly up channel to stay intact, price must not break below 1.4295

    5 min - A double top has formed against 1.4435 and more or less has reached price target at 1.43244.

    General Downward pressure is still intact, while bearing in mind there are 3 levels of support at the 5 min levels.

    S1 - 1.4350
    S2- 1.4320
    S3- 1.4292 (Critical)

    Neckline of double top, at 1.4380 serves as the immediate Resistance, followed by 1.4435.

    Breaking of the Downward pressure line and Immediate 5min Resistance at 1.4380 will attract a lot of buying interest.

    Buy: A buy order can be placed few pips above 1.4380 ( say 1.4385), for price to target 1.4435. Stop loss will be below 1.4370s ( say 1.4366)
    Buy@ 1.4380, Take Profit 1.4420s-30s, Stop Loss 1.4366

    Sell: A sell order can be placed few pips below the critical support level of 1.4295 ( say 1.4288) for price to test 1.4250s.
    Sell@1.4288, Take Profit 1.4255/ 1.4220s