TradeCompass: Euro FX Futures Analysis – 16 January 2025
Financial Instrument: Euro FX Futures (EUR/USD Futures)
Price at the Time of Analysis: 1.0318
Key Levels and Trade Scenarios for Euro FX Futures Today
Bullish Above: 1.03455
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Why Bullish Above:If Euro FX Futures rise above 1.03455, the price will surpass yesterday’s highest VWAP and break above the significant level of 1.0342, the Value Area High (VAH) from January 9. This indicates strong bullish momentum.
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Bullish Profit Targets for Euro FX Futures Today:
- 1.03577 – Quick partial profit-taking, just below yesterday’s VAH.
- 1.03700 – Another partial target below the Value Area Low (VAL) of January 7.
- 1.03900 – Final target, just below the Point of Control (POC) from January 7.
Bearish Below: 1.03067
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Why Bearish Below:A move below 1.03067 signals the price dropping under the Value Area Lows (VALs) of the past three days, suggesting increased selling pressure and a bearish outlook.
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Bearish Profit Targets for Euro FX Futures Today:
- 1.02996 – Quick partial profit-taking, just above the VWAP of January 14.
- 1.02912 – A deeper target as bearish momentum builds.
- 1.02767 – Extended target, well above the VAL of January 14.
Educational Insights for Euro FX Futures Traders
VWAP in Euro FX Futures Analysis
The Volume-Weighted Average Price (VWAP) provides critical insights for understanding market sentiment in Euro FX Futures trading.
- Key Applications of VWAP Today:
- Use VWAP as a dynamic support and resistance level to gauge institutional activity.
- A move above VWAP confirms bullish sentiment, while a break below suggests bearishness.
- Combine VWAP with VAH, VAL, and POC levels to refine entry and exit strategies.
Value Area in Euro FX Futures Today
- Why the Value Area Matters:The Value Area highlights zones where most trading activity occurs, offering essential levels for decision-making.
- Bullish Strategy: Enter long positions near the VAL and target the VAH or higher levels.
- Bearish Strategy: Look for short entries near the VAH, aiming for the VAL or lower levels.
- Pair Value Area levels with VWAP and Delta analysis for enhanced precision in Euro FX Futures trading today.
Disclaimer
This Euro FX Futures analysis is for educational purposes only and does not constitute financial advice. Trading in EUR/USD Futures involves significant risks and may not suit all investors. Always trade responsibly and manage your risk effectively.
Visit ForexLive.com for more insights and updates on Euro FX Futures.
This Euro FX Futures analysis offers a structured “compass” to navigate today’s market. Use the defined bullish and bearish thresholds to anticipate price movements and manage trades effectively, while incorporating partial profit-taking strategies to secure gains and balance risks.
This article was written by Itai Levitan at www.forexlive.com.
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