In this edition of the DecaPip Daily I would like to focus on the EUR/USD currency pair as we experienced a large reversal day in Tuesday’s trading.
Buying was expected to start in the 1.0750 region this week however we saw price starting to reverse from 1.0809 to the 1.0968 daily price high in a very active USA session.
On my behalf it is difficult to know how genuine this recent up move is and whether I should now look for places to buy the EUR/USD or continue to look for places to take quick short term DecaPips.
On the charts I have located what I will call “tester” areas of support and resistance where I can step back and see how price takes to 1.1015 resistance area and also a possible test of 1.0858 Support level.
The chart below highlights the areas to watch. Please note how our resistance line has been used numerous times in recent up and down moves.
EUR/USD 2-Hour Chart
If we continue to the upside I would look to take a quick short scalp trade around 1.1052 assuming we continue to move to the upside.
EUR/USD 8-Hour Chart
If we do manage to go to my R2 and R3 I feel they are very solid levels offering stern resistance and should offer excellent swing trades for some very solid DecaPips.