Transcript of Video
From Forex Traders Daily, this is your daily analysis with Ross Mullins, live from Richmond, Virginia.
Hello everyone, this is today’s video analysis for March 13, 2018. Today we’re taking a look at the Euro versus the US Dollar [EURUSD] for today’s trade analysis.
First thing here on the daily timeframe that I would point out is this black box that you see up here at the top right-hand corner of the chart. Big black box started all the way back here in January 12. So, since January 12, we’ve been in this range. Going from the green zone at the bottom, down into the 1.2220, 1.2180-level at the bottom of the black box. The blue zone at the very top closer towards the 1.2495, 1.2520-level. And we’ve been bouncing around in here, again, most of 2018, since January 12.
We could see support lows at the bottom. Resistance highs at the top. The blue boxes. The green-shaded area is showing support. The yellow and the pink zone though in the middle is where we are right now sort of in the middle of the longer-term range and that’s where we’re studying for our opportunity today for the EURUSD.
Let’s go ahead and zoom it in a little bit on this black box and you could begin to see what’s been happening in here. We’ve recently come off the green zone. Made our way back up to the orange zone. A little bit lower high. That’s interesting, isn’t it? We have a little bit of a lower high here for the EURUSD telling us that maybe the sellers are starting to take more interest here in the currency pair.
Now, if we saw higher highs, then that would tell us buyers are more interested. So, that’s something interesting that we’ll want to watch over the next few weeks. So, we see a little bit of a falling high within the range. We see the market in congestion in the middle of the range. Look back a little ways. You could see there’s this period. I have it circled here. Five days bouncing around in here before falling down to the green zone.
We came back up. There’s a period here that it slowed down in between there too. It’ll make more sense on the four-hour. And here we are again now. Three and now the fourth day bouncing on support at the pink zone, finding resistance at the yellow zone.
Let’s go ahead and take it on down to the four-hour timeframe and take a look at this period here. I’m going to bring this circle in like this. You could see that right there. Again, let’s pull this in. So, the two circles there. You could see that period between the yellow and the pink-shaded area finding congestion, resistance, and support. So, what that tells us now of course is that we’re in that same area. We see the pink zone as support. Yellow zone as resistance.
The first thing that I could say about this yellow zone is it doesn’t become a very good opportunity to go long or buy because it’s finding resistance. 1.2340, 1.2375. So, going long right now just doesn’t seem like a good, logical opportunity. The only real reason you would buy it is if it started moving higher and broke through this yellow zone because you know historically, if it does that, it’s going to the orange or maybe the blue zone at the top of the chart.
The next thing we know that if we’re not buying it is that maybe it becomes a potential opportunity to go short, targeting back down at minimum to the pink-shaded area. That become sort of our first target. And secondary is if it can break through the pink zone, we look for it down here into 1.2200 and the green-shaded area at the bottom of our range that we’ve been in since January 12.
So, we know where the decision zones are. The yellow and the pink zone. If we’re a buyer, we think the pink zone would be a better buy or a break above the yellow zone. If we’re a seller, the yellow zone is taking our interest today, 1.2340. So, I have gone ahead and taken the short here at 1.2340. Stop loss of course pretty clear. We just don’t want it to get above the yellow zone. So, your stop loss is above the yellow zone. We target the pink zone as our first target. Secondary, again, we’ll target the green-shaded area on the way down for the EURUSD today.
Forex Traders Daily, this has been your daily analysis with Ross. If you would like to get Ross’ analysis on all the currency pairs he’s watching and all the trades he takes today, join him in his live Trade Room by clicking on the link below. Please leave any comments you have about today’s video in the comment section below.