I’ve been making a better effort to check what’s been going on the 4 hour time frame in these faster paced markets. The EURUSD downward trend seems to have lost some momentum and we are seeing price really ‘jam up’ and congest above a daily support level. The EURUSD was basically in ‘freefall’ for a while there, but now we’re starting to see a lot more thicker bullish bodies in the daily candles as this market attempts to recover.
The EURUSD 4 hour chart produced a large ‘thick bodied’ bullish rejection candle / pin bar reversal, signalling that higher prices are likely to develop. I always try to line up 4 hour setups off important daily levels to help increase the probabilities of the trade working out. A retracement entry has already been offered on this setup, let’s see how this one plays out to finished off this week’s trading.
EURUSD Trade Update
The EURUSD we discussed last week ended up maturing and hitting our 1:3 before the Fed injected volatility into the markets last session. It looks like the Fed comments have caused the USD to gain strength again, so we will probably see EURUSD continue to weaken. I don’t follow the news, but when I see FMOC statements on the calendar – I consider getting out of my positions or at least locking in a break even scenario.
This is just a good example of how you don’t need indicators to make trading decisions, a clean price chart is all the information you need to anticipate future price movements.
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