~ Week Of Feb 20th 2017 ~
Strong Support level
Published by Jay Davies - February 19th 2017
The popular EURUSD pair has an extremely strong support level present on the chart close to the big round number of 1.05000. If you zoomed out on the daily chart you would see that this level had held strong for a number of years with price unable to push down lower. The recent move down that we did see through this support level in December of 2016 was very short lived and lasted only a couple of weeks as market players pushed price back up above the level.
We saw this big push higher by the buyers on the 5th of January which has resulted in the short lived resistance level now once again becoming a support level. If we have a more in depth look at the daily chart we notice that on the 11th of January there was an attempt by the bears to force price back down, however this clearly failed as denoted by the large lower candle wick.
The 15th of February also saw the market respect the support level before moving higher. After this move, price did react around the 50% Fibonacci level or midway point of the range that is currently in place. When the market reopens next week will the support level continue to show the same strength as it has in the past? Will price move back up to the recent market high? Keep your eye on the EURUSD for a potential trade in the days to come and the right indications to enter the market.