EURUSD Price Action – Pinbar Rejection At Key Round Number Area
- The EURUSD pair has seen a breakout and subsequent rejection from the key 1.3500 handle psychological round number area, as the euro erased intra-day gains versus the US dollar, following a rally to the fresh weekly high of 1.3518.
- A pinbar formed on the 1 hour timeframe chart during the NY trading session, as can be seen below.
- The current daily range is 93 pips, 112% of the ADR over 60 days. Euro/dollar is at present trading up around 0.31% on the daily basis.
- This 1.3500 round number area had confluence with the 61.8% Fibonacci level; and the 1 hour 200 SMA.
- Price has subsequently dropped to test the previous resistance area around 1.3427. These technical points of interest are now seen as key in the near term, with a sustained breakout potentially proving a near term directional bias.
- The above comes as the USDX (dollar index) is trading marginally higher on the day, just above the 80.00 area.