EURUSD: Range-bound momentum brings pair seemingly close to 1.10 where significant resistance still exists
The medium term daily candle chart below shows the price history of the Euro currency (EUR) versus the United States Dollar (USD). This currency pair is known as EURUSD, and is trading near 1.0977 around time of publication today - and off session highs of 1.0989 - a resistance area hit nearly twice earlier in the session.
Last time EURUSD was reviewed in Ideas You Can Trade was on April 20th when the pair was described as trading within the middle of a range between 1.05 and 1.10. Today EURUSD returned to the higher band of that range - but just missed 1.10 yet still seems bullish unless a real reversal follows.
Accordingly, traders may look to enter long with a break-above 1.10 where contrarians may expect a reversal if 1.10 is missed or if support fails - even after an upside breakout from that resistance barrier.
From current levels a bearish continuation seems like it would be first preceded by a small push higher followed by a drop if 1.10 cannot support a continuation or if it's missed altogether. Otherwise, a true-breakout could help the EURUSD escape above the range it's been stuck in for nearly two months.
Below are examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1.0992 with a Limit to take profit @ 1.1040 and a stop-loss @ 1.0951 Risk/Reward Summary: Limit risk = +48 pips profit / (-41) Stop-loss risk = Gain to Loss ratio = 1.17
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1.0899 with a Limit to take profit @ 1.0850 and a stop-loss @ 1.0948 Risk/Reward Summary: Limit risk = +49 pips profit / (-49) Stop-loss risk = Gain to Loss Ratio = 1.00
Medium term daily candle chart (Zoomed-in):