EURUSD Breakout Update

Talking Points

• EURUSD

  Opens Lower on

  CPI

  Data

• Breakout Signaled Under 1.2645
• Range Reversals Triggered Inside of 1.2680

AUDJPY

30Minute


Chart

(Created using FXCM’s Marketscope 2.0 charts)

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The EURUSD opened the US Trading session lower, on better than expected US CPI data. With the

US Dollar

strengthening, the pair immediately declined through range support found at the S3 pivot seen above. However, despite Dollar strength the pair failed to break through the S4 Camarilla Pivot. Moving forward, if downside momentum continues, traders can look to take advantage of a lower low formed under 1.2645 in the direction of the daily trend.

In the event that a breakout fails, traders will look for a resumption of trading inside of today’s trading range. Today’s range spans 69 pips and can be seen between the R3 and S3 pivot above. Currently range support sits at a price of 1.2680 and resistance is found at 1.2749. A price move between these values would signal a conclusion of today’s earlier downward momentum. At which point, traders can look to take advantage of reversal inside of the range.

Suggested Reading:

Trading Intraday Market Reversals

Yesterdays Update

Tuesday’s reversal article focused on the AUDJPY opening inside of a 34 pip range. At the time of publication the pair had move through the range four times, and was moving lower off resistance. By the conclusion of trading, the pair had traversed the range two more times. To learn more about yesterday’s action, check out the FX Reversal article linked below.

FX Reversals: AUDJPY Support & Resistance Update

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—Written by Walker England, Trading Instructor

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