Talking Points
- The EUR/USD has bounced off of today’s S4 pivot
- Price is currently below range resistance at 1.1173
- A breakout above R4 would signal a bullish breakout
(Created using FXCM’s Marketscope 2.0 charts)
The EUR/USD opened Tuesday's London trading session attempting to breakout towards new weekly lows. However, despite declining as much 85 pips from today’s open, EUR/USD price action is now trading back inside of its Camarilla pivot range. Currently, price is trading under range resistance which is found at the R3 pivot point at 1.1173. In the absences of a breakout to a new higher high, traders will begin watching for price to move back through today's 57 pip trading range back towards range support at 1.1116.
It should be noted that price has already failed once to break below the S4 pivot at 1.1088. Despite price quickly rebounding from support, a retest of this value could lead to further bearish momentum for the EUR/USD. Alternatively a breakout above the R4 pivot at 1.1201 would suggest price returning back in the direction of its current daily trend. In either breakout scenario, traders can use a move through either the R4 or S4 pivot point to signal the end of current range bound conditions.
---Written by Walker England, Trading Instructor