Stuck in Limbo: A Leap to 1.15 or a Slide to 1.05 on the Cards?
The EURUSD has been stuck in a range between 1.05 and 1.10 for around a year now. We're left wondering: could we see a breakout towards 1.15, or will it drop back to the bottom of the range at 1.05? What happens as the price dips below 1.08 could be crucial.
Take a peek at the daily chart below. It shows us inching back down to an untested weekly BUY/DEMAND zone. This is where we last saw the price climb above 1.11 before it sharply dropped back within the 1.10 range.
As the price makes its way back to this BUY/DEMAND zone, the selling momentum isn't all that fierce. Each time the price dips, buyers are quick to jump in. This might be hinting that big players are quietly building buy positions, possibly to break past 1.10 and head up to the 1.15 Monthly SUPPLY/SELL zone.
Or they could just be waiting for this weeks news events??
My plan is to wait for the price to fall into the buy zone below 1.08, then look for a BUY signal on my TRFX indicator on timeframes above 6 hours.
The first target for this position is the 1.10 area. I'll be keeping an eye on the momentum as we near 1.10. If it's strong, it might indicate buyers are targeting a move above the 1.11 high.
However, if there's a clear break and close under 1.07, this idea won't hold, and the price will likely move back down to the bottom of the range at 1.05, which could also present buying opportunities.
With the FOMC and NFP events coming up, these could be the catalysts for these moves.
That's my view on it – hope you found it useful.
