Direct from the desk of Dane Williams.
We're starting the week with EUR/USD very much in play for the day-traders.
Having last week watched EUR/USD approach daily support, Friday's candle gave us a nice reaction off the level to confirm its significance.
When you take a look at the last two daily candles on the updated daily chart below, you'll clearly see what I mean.
EUR/USD Daily:
Look at how price dropped into that daily support zone, pushing lower right to the bottom of the zone, before closing right on it and rejecting higher.
Crazy how it closed on our support line we had drawn from that first move higher TO THE PIP!
I'm still always amazed when levels hold so cleanly like this.
So from a day trading point of view, let's take a look at how we can take advantage of this EUR/USD daily support zone having held.
The way we trade is all about ignoring biases and just trading what the market gives us.
With price above daily support, that's the opportunity to tightly manage our risk and hopefully give us a chance to get in early enough to take positions with high risk:reward.
To achieve this, we will be zooming into an hourly chart to find areas of short term resistance being retested as support.
Mark your levels and trade your levels.
Trading doesn't have to be a complicated game!
Best of probabilities to you,
Dane.
FOREX BROKR | Hive Blog
Higher time frame market analysis.