Direct from the desk of Dane Williams.
How has it been a month since I've talked about the most liquid forex currency pair on the planet?
Well, after EUR/USD bullish momentum was first slowed by resistance, price has just traded sideways along our zone - That's why. Chopping through up and down. Hugging the zone enough to keep it relevant, but not clean enough to day trade.
With the EUR/USD bears looking like they've now taken some level of control in the market, it's time to start paying attention from a day trading point of view once again.
EUR/USD Higher Time Frame View
Starting off with a EUR/USD daily view, let's take a look at where price was at when we last spoke about the pair in the blog that I've linked to above.
But does the euro daily chart below show that we're due for a pullback?
EUR/USD Daily:
Answering the quoted question from that previous blog, the answer is now yes.
Take a look at the current daily price action below.
EUR/USD Daily:
You can see that with the bears having pushed price well below the daily zone and then having it cleanly retested once again, we'd be looking to trade only from the short side.
EUR/USD Intraday View
Now zooming into a EUR/USD hourly view, it's time to look for areas to manage our risk around and enter off if we were to take a short.
Take a look at the hourly price action below.
EUR/USD Hourly:
You can see that as we were looking for shorts, we find the first area of short term support that when retested as resistance, could be used to enter off.
I've marked that zone in green, from the candle you can see above.
With price now retesting the zone, you can see that the bears held firm and rejected once again with minimal drawdown.
Once again you can see that by trading something similar to my forex support and resistance strategy, you can find numerous low risk/high reward setups on a daily basis.
Whether you trade them aggressively with your stop above/below the intraday zone, or conservatively with your stop above/below the daily zone, is entirely up to you.
Best of probabilities to you,
Dane.
FOREX BROKR | Hive Blog
Higher time frame market analysis.