EURUSD Technical Analysis for July 11-15 2016

EURUSD Technical Analysis July 11-15 2016

Daily timeframe

Contents

After breaking outside of the large multi-month channel, the pair is now in some sort of a horizontal channel, consolidating after the volatility spike from the Brexit event. Longer term, it still makes sense to trade this pair from the short side because of the clear bearish signals on the daily timeframe. However, to unfold that scenario may take its time, and we could see another leg higher in EURUSD, possibly to now fully retest the large channel from the other side. Analyzing the price action can help determine the true nature of the trend, so if the pair starts to move up with choppy slow price action, then we can be sure it’s just more retracement of the larger downtrend that is intact.

EURUSD Daily chart – Can not break out!

4h timeframe

We zoom in on the consolidation here, and you can see the Fibonacci extensions from the first leg up drawn on the chart. The 100% extension is slightly higher than the current level of the lower trendline of the large channel on the Daily and Weekly timeframes. Will the market go that way we can’t be sure at the moment as the thing with ranges is that you never know until the price breaks out of them. So, waiting for a breakout will be a good strategy here as well.

EURUSD 4h chart – Higher or lower? Wait for a breakout!

1h timeframe

Here, we can see how price was rejected at the lows and now it finds itself right at that resistance trendline drawn on the chart. It could prove as key resistance because it was tested so many times. A breakout to the upside will most certainly open the way for the price to reach the top of the channel and even the 100% Fibonacci extension we talked about on the 4h chart.

EURUSD 1h chart – Watch the trendline, a break higher would most likely mean a test of the top of the range.

Our Recommended Brokers:

Best US Broker

Finpari is a trusted international broker accepting clients from USA.

They accept US clients
1-Hour Withdrawal
Paypal & AMEX Accepted
$1 Minimum Trade
Huge Bonuses
Highest Returns
Weekend Trading
Free Education

Visit Site

Best Regulated Broker

IQ Option is the world’s leading EU regulated broker based with a revolutionary platform for all traders.

One of the best Trading App for Binary Options
Minimum Deposit of only $10
Minimum Trade of $1
Trusted Broker
$10,000 Virtual Funds ( Demo Account )
Quick Withdrawals
Outstanding Platform
Weekly Tournaments
Gain up to 100%* (in case of a correct prediction)”