EURUSD - important res/supp levels for day-traders

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Why is S/R important? They are just points in the market where movement might or might not reverse. Just pay attention to market strength, and correlations. There is no need to trade with s/r levels if you don't want to, they are not important. Market will pay attention to them if it wants, and pass it if it wants.

 
James the Giant:
Why is S/R important? They are just points in the market where movement might or might not reverse. Just pay attention to market strength, and correlations. There is no need to trade with s/r levels if you don't want to, they are not important. Market will pay attention to them if it wants, and pass it if it wants.

Yes, you are right. Sometimes market reverses near them, otherwise it passes them. But I continue to think that they are importatnt because the market focuses on them and reacts to them (although we don't know from that start what kind of reaction will that be).

There are many such points: trend lines, popular averages (10,20,21,50,100,200 hours/days etc), fibonacci, support and resistance, pivots, bollinger etc. I think that traders look at all these levels and in conjuncture with the orders from the clients, they might buy or sell near them.

So it is important to know at least where important or suprising price action might take place.

You mentioned market strength. How do you measure it? Volumes, orders ?

 
 

Merry Christmas to everybody !

See you again on January 3rd.

 
 

Until now, Wednesday was very volatile. Thanks to a good ADP number, USD was up across the board. EURUSD plunged seriously during all day and touched 1.3125 before London close breaking an exotic option barrier rumored to be in placed at that level. Commodities managed an U turn after London close and the stock markets are mainly up for the day.

Obviously my 1,.36 level was a tougher resistance than I have imagined it to be. Not only in had paused the up-trend but it completely reversed it.

Also obviously we have now a support in the area of 1.3125 - 1.3114. Bellow that next support comes in only at 1.3076.

Resistance will probably be found near 1.3255

For today I have 3 charts. See them all here: KTD Invest :: FOREX Technical Analisys

 

Great stuff! Always looking for a little extra knowledge with current trends and R/S!

 

From the technical view point, the move from Friday looks like a rejection from an important resistance level. This makes me think that perhaps on early Monday we might see a continuation of the profit taking and more weakness for EURUSD.

Still, I see that most of the forecasters still anticipate EURUSD strength for the coming week. Also the CTFC report published late Friday shows that speculators are still very bullish on the euro.

Anyway, next week all eyes will be on Ben Bernanke's testimony before Congress and on the NFP to be announced on Friday. While the first event could be negative for the stock market and positive for USD (if there are hints that the Congress is opposed to more easing), the second one could generate some weakness for stocks and for USD also (if the unemployment rate will not continue to diminish as it did during the last couple of months).

From the technical point of view I have in mind the following levels of resistance and support for the Monday session:

1.4022 monthly R1

1.3934 my own calculated volatility band

1.3861 the high from Febr. 2nd

1.3522 the low from Febr. 22nd

1.3447 monthly pivot point

1.3422 the low from Febr. 14th

Check my daily EURUSD analysis here: Iulian Panait - consultant de investitii autorizat CNVM

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