FX Reversals EURUSD Intraday Breakout
Talking Points
-
EURUSD
opens US trading below S4 pivot
- A bias towards lower lows remains under 1.3502
-
A move above 1.3512 would signal a potential false
breakout
EURUSD
30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The EURUSD has begun the US trading session beneath daily S4 camarilla pivot. Price began this drop by first falling below range support at 1.3512. As price continues to move towards lower lows, breakout and trend traders will look to take advantage of the currency pairs continued downside momentum. Currently price has surpassed a 1x extension of the camarilla pivot trading range, but as long as price remains under the previously mentioned line of support day traders and market scalpers can continue looking to initiate new sell based positions on the EURUSD.
Breakout traders should always be aware of the potential for a false breakout. A move back above the S3 line of support would signal another price reversal for the day and an end to current market conditions. At this point, breakout and momentum trading should be concluded and traders can consider entries with the markets new influenced direction.
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Previous Market Setups:
FX Reversals: USDJPY Resistance Update
FX Reversals: EURCAD Reaches Intraday Resistance
FX Reversals: NZDJPY Intraday Resistance
FX Reversals: EURCAD Resistance Update
—Written by Walker England, Trading Instructor
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