EURUSD resistance overhead, has room to fall
EURUSD has a bearish signal and this is its expansion below 2013-low. 2013-low or 52-week low is a psychological level. It indicates the currency pair’s bearishness and acts as resistance at the same time. The message it gives to forex traders is:
Below 2013-low, EURUSD does not have significant support but finds a significant resistance overhead.
2013-low (52-week low) a giveaway level traders must not miss
52-week highs and lows are giveaway levels that traders must not miss. They are easy to spot. They are watched by traders, analysts and newswires which makes highly relevant. Past year levels do not reprint so they are very reliable; this quality also makes them perfect for alert, filtering purposes so that they are often programmed into expert advisors. I have written a comprehensive piece on the use of these price levels here and posted examples here.
These charts of EURUSD shows us that:
- EURUSD has only one 52-week low in 2013 so it is very easy to spot.
- 52-week low’s effect on price can be spotted on lower time frames like 4-hourly chart even though the most convenient way to find the level itself is on a weekly chart..
- 52-week low acts as interchangeable support, resistance level.
- Candlestick patterns confirm the level’s usefulness.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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