This EURUSD price action highlights importance of looking at high time frame
From my observation, members of our community tend to overlook the importance of higher time frame charts during their trading and analysis. It is true that when we swing trade and for some members occasionally scalping and playing high impact news, we tend to worry that ‘over-analysing’ or analysing too many time frames will cloud our judgement with too many levels to worry about. However the importance of higher time frames cannot be emphasised enough especially effort put in to discover very significant support resistance levels.
Significant EURUSD multiple-month resistance level
Take this multiple-month EURUSD resistance level (blue line) that we can see in the daily and weekly chart.
Zooming in to 1-minute charts in the aftermath of the German IFO Survey, price action shows how that same higher time frame resistance level does play a part as a technical level. We won’t know the results of the German IFO, but we will certainly know that EURUSD is up against an overhead resistance to clear before it can advance higher.
Video of 5-minute action
As a treat, we have a 5-minute video clip that starts just before IFO results were released and the following action as it attempts to penetrate resistance. And fails.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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