Remember last week, we had EUR/USD reaching channel resistance?
Here’s a refresher of the chart if your memory is a little hazy on hump day (we can all relate, don’t worry!):
EUR/USD Daily:
As you can see, this was the third touch of the daily channel resistance level. Just keep in mind that price is still 250 pips or so away from the horizontal level that makes the top of the horizontal range that we’re also watching, but it was hugely significant resistance none the less.
The point we made around that chart was this:
If you’re already long off that previous hourly resistance turned support level, then you’re sitting pretty right now and can afford to hold for a higher time frame break out.
It was this EUR/USD intraday breakout and retest of resistance as support that gave us that line and very well done to those of you that managed to hold your nerve. You certainly got paid in the end!
I’ve used a 4 hour chart below, simply because it shows the daily channel breakout the clearest. But of course you can look at it on whatever time frame suits you.
EUR/USD 4 Hourly:
A clear breakout, (another) retest of previous resistance as support and then a momentum push higher.
If you’re a technical trader, this entire narrative is pure art.
Best of probabilities to you.
