The monthly chart shows EURUSD is rejected a little from the upside resistance of 1.1300. The support is 1.0900 and we could see a bounce higher from here for another attack on the strong upside resistance.
SPECIAL SUMMER WEEKEND OFFER TILL 21.08.2023. MENTORING $300
The Weekly EURUSD chart reveals a strong uptrend support zone falling wedge of 1.0860. This is the first strong line of defense for the existing uptrend supported by a strong uptrend line and a horizontal support line. This zone should hold for the extension higher. A break below 1.0860 would lead to a complete downside reversal and a bounce from this ongoing zone will lead to another test of 1.1300.
GET THE CHART OF THE DAY EVERY DAY IN YOUR INBOX
As the famous trader says…
” When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out.”Randy McKay
How to trade this?
It is a fact that a strong upside resistance for Q3 is 1.1300 and we have seen a rejection from it. If we get a confirmed bounce from 1.0830 we could see an extension higher to key long-term resistance 1.1300. A break above this level would mean a complete turnaround. Near-term, long-trade entries have a higher probability of success. There is a possibility of long trade entry and short trade here. We can open the long trade here with a bit of risk and stop the loss below 1.0800 and the short trade if we get stopped from the long trade.
