The last 6 -7 weeks have been nothing but horizontal price action on EURUSD. The weekly horizontal range since the March 2015 lows still holds, and at the moment it seems that the market has potential to reach the upper border (1.16).
However, the sideways price action will probably continue on the daily timeframe as well as on the lower timeframes. So, it’s best to not make any calls about where EURUSD will trade next because sideways ranges are very unpredictable in nature and price very often will reach a high before falling down on its head.
On the weekly timeframe, major support is 1.05 and major resistance is 1.16.
EURUSD Weekly chart – Horizontal price action
No chart patterns can be spotted at the moment and that leaves us again to trade mainly with support and resistance levels. The price has already traded the weekly and monthly pivot points (1.1225 level for both this week) and if it stays above them it will have bullish implications, making it more probable that the pair will breakout higher. If that’s the case, 1.1350 is a particularly strong resistance zone because of an important previous high, the monthly pivot resistance 1 is close and several Fibonacci extensions (blue lines on the chart) all meet in this 1.1350 zone.
If instead, the market decides to move below the monthly and weekly pivot points then that will be more bearish for the pair and a move lower to the 1.1120 support will be more likely.
EURUSD 4h chart – 1.1350 is strong resistance
Nothing from last week has changed on the daily timeframe, the range is still intact as we said. Friday’s candle with the long lower wick does suggest in some way that a bullish breakout is more likely, but still, there is no sure way to tell until one happens.
Again, it’s best to stick to short term – range trading strategies for now. Entering on chart patterns that appear close to important support or resistance on the lower timeframes is also a good way to trade the pair at the moment,
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I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
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