|
EUR/USD Breakout? Maybe Not Yet. |
| | | Well, if you're watching the hourly chart, and following our daily pairs analysis, you know the EUR/USD really broke out of ranges we were watching. We had been following a downtrending resistance level, as well as clear horizontal Fibonacci level, and this weekend the pair seemed to ignore those levels and broke to the upside.  
 Read/Post Comments
But does this breakout on the hourly chart mean we're in the midst of a new longer-term bullish trend?
Continues below...
Let's take a step back and look at the daily chart. When we're evaluating bullish or bearish trends, we really need to have a longer-term perspective that we just can't get from the hourly charts (Learn more about Support and Resistance Levels here).
In looking at the daily chart (below), we see that despite the weekend's breakout, we still don't have a break to the upside long term, but we are coming up against our down-trending resistance level again.
So we'll need to watch very, very closely this week, because we're likely to see the USD lose ground against all the majors, and a clear break through that resistance level could mean we start looking for a new trend.
Next: Support and Resistance Levels.
To see the rest of today's market videos and education, click here.
| |
|
