The head and shoulders pattern I wrote about in the last article never materialized. This currency is in a range because the market can’t decide what to do next.
How long does it take to for a currency to be considered in a range? I don’t know but I know that the Eur/Usd is in a range now. The was in an upward moving trend that has slowed down to be in a trading range. The pair crossed the 1.4626 level on October 4th and from there the price moved up to 1.5062. The pair has been in between those two points since Oct 4th.
So now that the trend trading is over with it must be up to range trading to find entries on this pair.
4 hr chart *note click the chart to learn about a charting system
A good way to find entries is to look at support and resistance levels and put trades in on the bounce off of those levels. A confirming candle formation is also important when entering a trade, don’t just enter as soon as the bounce happens but instead wait for the candle formation to give confirmation. If you need some help with candle formations check this helpful explanation.
The support and resistance levels to watch are marked on the chart with think blue lines. The 1.5062 area is important right now as well as the 1.4823 level. If those areas get broken begin to look for the pair to start trending again.
News is what drives the currency pairs so keep informed about all the upcoming news articles from Forex Crunch.
In addition to my views on the Eur/Usd you can view other views on the pair at the Koala Bear Guy’s website.
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Winner’s Edge Trading, as seen on: