The EURUSD is at confluence of support worth noting, that may lead to a promising New York Session today. At the bottom of this article I also highlight resistance that must be considered in this trade as well, so please read this entire article before considering a position. There is upper trend line resistance in the 4 hour view, the Weekly Central Pivot and the Monthly R1 that must break before entering a serious bullish position… If this upper resistance does not break in New York today, this trade opportunity may come into play in the next day or so when upper 4 Hour trend line resistance does break… if the support levels mentioned in this article don’t hold today, this is no longer a viable bullish setup.
1st Level of Support: Previous High
The EURUSD has pulled back to previous high support at 1.12000 in the London Session today, which is a buy zone.
2nd Level of Support: 50% Fibonacci Retracement
You can see in the two charts below that price is at the 50% Fibonacci retracement of the most recent bullish rally. The 50% Fibonacci retracement level and the 61.8 retracement level below are both very legitimate buy zones. WM2 is just below the 61.8 retracement level here, so anything above WM2 support at 1.1162 is fair game for bulls in my book… however, for a conservative entrance, I would wait for upper resistance to break mentioned below and then wait for a pullback for the best value in your entrance.
3rd Level of Support: Psychological Level 1.12000
The 3rd criteria of this confluence of support is the psychological level 1.12000.
You can see below that the Psychological Levels act as support and resistance for the EURUSD.
4th Level of Support: Daily S2
The EURUSD is also finding support from the Daily S2 Pivot Point at the 1.12000 price level as seen below.
5th Level of Support: Daily 23.6 Fibonacci Retracement
In the Daily Fibonacci Analysis below, you can see price is now within range of the Daily 23.6 retracement level, which is valued support.
My daily profit targets are seen on this chart:
#1 Previous Highs at 1.13779
#2 +23.6 Fibonacci Extension Level at 1.15634
#3 +38.2 Fibonacci Extension Level at 1.17069
#4 +61.8 Fibonacci Extension Level at 1.19076
RESISTANCE TO BE AWARE OF BEFORE CONSIDERING THIS TRADE
If your a bull on the EURUSD be aware that price is still below both the Weekly Central Pivot Point at 1.1222 and the Monthly R1 Pivot Point at 1.1227. Both, these pivots will need to be breached for momentous bullish price action in today’s New York Session.
Below is the previously mentioned 4 Hour trend line resistance. When the previous trend line (seen below) was broken we saw bullish confidence. I would wait for this upper trend line to break before buying into the EURUSD today… or in the following days…
One further note, 4 hour stochastic oscillator is oversold and is slowly crossing up as I write this article this AM…. but keep your eye on the upper 4 Hour trend line and MR1 and the WPP… we are slow through these levels… as of now…
US DOLLAR ANALYST, FOREX.TODAY