By Russell Glaser – The EUR/USD has been testing the 200-day moving average line. Following yesterday’s decline in the price combined with using multiple time periods, an opportunity exists to enter the market with this target in mind.
The daily chart below shows the failure of the EUR/USD to close above the 200-day simple moving average. This level can be used as a target for long positions in the pair (R1 1.3265). Support for the pair comes in at the 38.2% Fibonacci retracement level from the December high at 1.3120.
A buy signal is given on the 4-hour chart as the Slow Stochastic oscillator has formed a bullish cross, indicating a potential move higher in the price of the pair.
Using multiple time periods, traders can find an opportunity to go long on the EUR/USD with a relatively nice profit to risk ratio of 2:1.
Forex Market Analysis provided by ForexYard.
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