It all started yesterday with me stating :
Well after the Data and ECB rate decision, I can not only be satisfied with my previous analysis, but can give you some more input on the current state of EURUSD.
Right now, Support comes at 1.06950, followed by another one at 1.06500
Resistance is at 1.07400 ( previous Up trend line , that was broken clearly – Support becomes a Resistance )
The Last line of defence is waiting at 1.06100 and if taken out will open the road to Parity
As it was lately, every single Data will have it’s overwhelming impact on the pair, and it means that we are going to see lots of hysterical moves , every time market participants find themselves disappointed in results – way more then when the results are in line with their expectations.
Depending on tonight’s close – above/bellow 1.07200 , tomorrow’s trading will be set.
It is quite possible that rate continues to drop, but I would like to see first the test of that previous support, now resistance at 1.07400.
The best approach is to trade on 1h or 30 min charts, taking into account the position of 4h chart.
It is not easy to combine different time frames , but it is essential if you want to have a precision and be able to place your stops accordingly .
You can find some insights on Trading using different time frames here.
I will post an update on EURUSD tomorrow, using the combination of these time frames, so it will be more clear to everyone.
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