"INDICATOR OF THE DAY" - PSYCHOLOGICAL BARRIERS
More often than not, simply using a psychological level as an indicator can be the most effective form of technical analysis. Even non-technicians are well aware of this simplest form of technical analysis and use these types of levels in their day to day trading.
The key level to watch over the coming session in the FX market is undoubtedly the 1.3000 psychological barrier in Eur/Usd. As such, we would expect to see some major stops built up below the latter with a break of 1.3000 to more likely than not open the door for more significant medium-term setbacks and signal a resumption of the broader downtrend. However, with intraday studies showing oversold, the 1.3000 level could be used as an ideal spot for profit taking on short trades ahead of the weekend. We therefore do not recommend any positions at this time.
Written by Joel Kruger, Technical Currency Analyst for DailyFX.com
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Joel Kruger publishes 6 daily pieces:
“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)
“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
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“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
“Cross Country” – A Midday Fundamental Update, along with Technical Analysis of Selected Cross Rates.
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“Scandi Daily” – A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact Nordic@fxcm.com if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
“Daily Classical” – A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)
