Trading plan for EURUSD
EURUSD is trading around 1.1850 and has potential to reach 1.21 if price breaks above 1.19. So far key support at 1.1750 has held. We now consider 1.18 as the key support and a break below 1.18-1.1820 support area will be a bearish signal.
Green rectangles – support areas
EURUSD has support at 1.18-1.1820 and next at 1.1760. Breaking below the first support level will be a bearish signal and price will then most probably push lower towards the next support area. If this happens this means that price will most probably have exited the bullish channel.
Pink line – support
Blue lines – bullish channel
If the above scenario comes true, then we will have an important bearish reversal with many chances of a pull back towards 1.16-1.15 area. That is why we turn bearish short-term on a break below 1.18 and we add to short-term short positions if price breaks 1.1760. Until then we remain optimistic.
The material has been provided by InstaForex Company – www.instaforex.com