A large range and resistance make for a key resistance area for the EURUSD
Over the weekend, I did a video on the EURUSD and spoke about a key resistance level at the 38.2% retracement of the move down from the November high (see video here).
Well the EURUSD has moved sharply higher today, but over the last few hours has stalled against that key retracement level.
After a big daily move, it becomes harder for a currency pair to extend higher - at least on the day. Traders who rode the trend are happy to take profit and sellers get anxious to sell a high.
If profit taking can be a technical level - like a retracement level - all the better. Risk can be defined and limited by those looking to cash in (in this case sellers). New sellers looking to sell a high, can lean against an extreme as well. This video explains this dynamic as a battle erupts against the retracement area and support below.
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