EURUSD trading plan (29-02-2016)

EURUSD trading plan.

Under 1,10, favor a return to the 1,05 support, but trade lightly as we are in a ranging -no trend- situation. At 1,05, look for bullish reversal or for a confirmed bearish break out.

The monthly chart of EURO shows us the euro in a range between 1,146 and 1,05. There is also a minor resistance around 1,1225. The pair seems to be rejecting that 1,1225 level, and after reversing down from 1,13 even broke down 1,1. Event though the euro is ranging, the SMAs are rather pointing down and suggest a moderate bearish environment; it looks like the pair is going to retest the 1,05 support line.

EURUSD MONTHLY CHART.

The weekly chart shows the pair ranging. After a strong bearish move (200 and 100 SMAs both pointing down), the euro started to range and short term SMAs (55, 20, 10) are mixed and entangled. The range resistance is around 1,144 and the support is around 1,05. There are also two resistances we may use to look for short signals: the 1,10 level and the 55 SMA that twice prevented the eurodollar from climbing. A support is located around 1,083.

EURUSD WEEKLY CHART.

On the daily chart, we ended the week with a bearish confirmed break down of the 200 SMA around 1,105. The last candle, a solid bearish one, also broke down a supportive trend line around 1,095 (The 100 SMA is also located there). This is why I prefer to sell the euro this week, but I will trade light as the daily SMAs are rather pointing up, and both Price Action (higher high, higher low) an the stochastic suggest we may go up.

EURUSD DAILY CHART.