EURUSD Resistance Zone: What’s Next?

Hello Readers,

(Click on image for Larger View)

This post is just a quick snapshot of what I’m looking at right now.

EURUSD just approached a reasonably strong Resistance Zone (Grey box). This was formed based on the multiple price reaction in the past (Green arrows). Below is a EURUSD Weekly chart is used to illustrate my argument. For those who use the Fibonacci Retracement tool, Price is now at 61.8% Fib level as well (drawn from Feb to Jul 2012). 

So What’s Next?

Simple, price will always repeat itself and I’ll expect nothing more than the following:

  • Continuation –  a potential retracement before going North
  • Reversal – price may bounce and start heading South
  • Consolidate – a sideway movement before it decides to go up or down

I am now very interested in this currency pair and I’ll start looking for entry signals on a smaller timeframes.

Patience

Some of you might find that my analysis is pretty pointless. If you’re one of them, I hope to remind you that Trading, when profitable, is pretty BORING (Yup, and I’ll say it again, it can be Boring!).

And, always remember that Patience Is A Virtue

Thank you and happy trading!!

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