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EURUSD high impact news: price action at higher time frame resistance

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.

EURUSD resistance level

Daily 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.

price action

1-minute chart

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.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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One thought on “EURUSD high impact news: price action at higher time frame resistance”

  1. Soh Tiong Hum says:

    Very appropriately put: “press panic button”

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