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The Best Trading Opportunity Today – EUR/GBP – November 10, 2015

By:
James Hyerczyk
Updated: Nov 10, 2015, 10:00 UTC

With the release of the U.K. employment data on Wednesday, the key market to watch today is the EUR/GBP. Aggressive traders may jump the gun and go into

Daily EUR/GBP

With the release of the U.K. employment data on Wednesday, the key market to watch today is the EUR/GBP. Aggressive traders may jump the gun and go into the report with a strong opinion so this is the Forex pair to watch for an early trading opportunity.

After last week’s surge to the upside, the Forex pair has fallen back into a short-term retracement zone. Trader reaction to this zone should determine the direction of the market today and perhaps over the near-term.

Daily EUR/GBP
Daily EUR/GBP

Technically, the main trend is down according to the daily swing chart.

The short-term range is .7041 to .7196. Its retracement zone is .7118 to .7100. Trader reaction to this zone will tell us whether the bulls or the bears are in control.

Aggressive counter-trend traders may come in on a test of this zone in an effort to form a potentially bullish secondary higher bottom. Holding this area could trigger a rally back to at least .7196. Taking out this top will turn the main trend to up.

Sellers are going to try to take out the lower or Fibonacci level at .7100. This price action will confirm the top at .7196 and could create enough downside momentum to eventually test the main bottom at .7041.

An uptrending angle comes in at .7101. This forms a potential support cluster with the Fib level at .7100. Watch the price action and read the order flow at .7101 to .7100. Holding this area could create a great buying opportunity.

If .7100 fails as support then look for the break to possibly extend into the next two potential support angles at .7071 and .7056.

If .7100 holds as support then look for a fast rebound rally into the 50% level at .7118. This price is the potential trigger point for an upside breakout.

Watch the price action and read the order flow at .7101 to .7100 today. Trader reaction to this zone may give us a clue as to how investors feel about tomorrow’s U.K. Labor report. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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