January 21, 2025 at 07:59AM
TradeCompass for Euro FX Futures (Ticker: 6E) – January 21, 2025
Current Overview:Euro FX Futures (6E) are trading at 1.0406, slightly below today’s VWAP (1.0412). This places the market in bearish territory based on the TradeCompass. Traders should monitor the outlined key levels for potential breakout or continuation trades.
Key Levels to Watch for Euro FX Futures Today:
Bearish Bias Below 1.0412
The current price is already below today’s VWAP, reinforcing bearish sentiment. A sustained move lower signals continued selling pressure.
Bullish Bias Above 1.04335
A breakout above this level aligns with:
The first upper standard deviation of today’s VWAP.
Yesterday’s first upper standard deviation of VWAP.
Yesterday’s POC (Point of Control).
This level indicates potential bullish momentum if price holds above it.
Profit Targets for Euro FX Futures Today:
Bearish Targets for 6E:
1.03925 – Positioned just above yesterday’s VWAP, offering a quick initial target.
1.03725 – Near the second lower standard deviation of today’s VWAP and slightly above yesterday’s Value Area Low (VAL).
1.03490 – A deeper bearish target for extended momentum.
1.03070 – For those targeting significant moves, this level offers a distant bearish target.
Bullish Targets for 6E:
1.04435 – A quick initial target, just above the breakout level.
1.04555 – Positioned just below yesterday’s Value Area High (VAH), making it a critical resistance level.
1.04740 – A more extended target for bullish runners.
Why These Levels Matter for Euro FX Futures Analysis Today
VWAP (Volume Weighted Average Price):
VWAP serves as a critical benchmark, representing the average price weighted by volume.
Price below VWAP indicates bearish sentiment.
Price above VWAP reflects bullish momentum.
Point of Control (POC):
The POC represents the price level with the highest traded volume during the session. It is often a magnet for price and a key level for identifying potential reversals or continuations.
Value Area High (VAH) & Low (VAL):
These levels define the price range where 68% of trading activity occurs. VAH and VAL act as reliable support and resistance levels, providing traders with actionable insights into market structure.
Summary of Euro FX Futures Analysis Today:
Euro FX Futures are bearish below 1.0412 and bullish above 1.04335. Traders should use these levels as a compass to guide their decisions:
Below 1.0412, focus on the bearish targets starting at 1.03925.
Above 1.04335, aim for bullish targets beginning at 1.04435.
Trade the euro at your own risk and ensure disciplined execution with proper stop-loss placement. Stay tuned for more updates from the TradeCompass!
This article was written by Itai Levitan at www.forexlive.com.
