EUR/USD: Waiting for a Short Signal to Appear at this

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After the Fed baited the market on with more of their ‘we might raise interest rate’ B.S. – we seen volatility pick up on EURUSD and a breakout of the ranging market structure it was stuck it.

Breakouts like this are a breath of fresh air for swing traders – as they can be the beginnings of large broader moves.

eurusd daily

There are two ways this could play out in our favor. The first scenario is price will move up and re-test the old consolidation support level, and confirm it is holding as new resistance by printing a large bearish price action reversal signal – such as a bearish rejection candle. This would be the golden scenario, as it would provide a very good entry price into the emerging down move.

Secondly – we actually have an inside day that is very close to the turning point on the chart here. We could see the lows breached and fuel a bearish breaking, kicking off a move that way.

I always advise to take breakouts only when they occur in the London session, when the money is behind the move. This strategy helps avoid getting caught in breakout traps.

Get the 5 most predictable currency pairs

About Author

The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.

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