September 1, 2009 03:31

Forex Signals – EUR/USD Home on the Range (Trade)

By:

9-01-09

4:21a GMT – Happy September! If you have survived this long life can’t be all that bad, right? Yesterday’s signals were dead-on as the EUR/USD skimmed support at 1.4250 and then jumped up over 100 pips in just a few hours. Since then it has stalled around 1.4360, forming a triangular consolidation pattern (yellow lines below) on the charts. 60M chart is shown but it is even more pronounced on the 4h chart. This leaves us with a few trading strategies for tomorrow, including catching range pips between the trend support/resistance and also catching a breakout on either side for a good run. I’m still partial to Euro strength but yesterday’s lower high coupled with a few other other currencies are expected to be weak against the dollar tomorrow and we might see a bull run on the US dollar.

Trading Idea: look to scalp some range pips between the trend resistance (1.4350) and support (1.4275). Tight stops as a break to the upside will target 1.4400 and1.4535, while a break below support will target 1.4215.

(click to enlarge)
eu9109rangetrade

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5 Comments on "Forex Signals – EUR/USD Home on the Range (Trade)"
  1. Reply
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    Comment left on:
    September 1, 2009 at 09:45
    marc says:

    wow this amazing site keep up the good work

  2. Reply
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    Comment left on:
    September 2, 2009 at 09:13
    Nnagozie says:

    do you trade on news?

    • Avatar of piphut
      Reply
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      Comment left on:
      September 2, 2009 at 13:48
      piphut says:

      Nope. Too much volatility on event risks. Impossible to use consistent/sound money management techniques on news trades. Stop gets tripped out to often and then the pair shoots back in the opposite direction!

  3. Reply
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    Comment left on:
    September 3, 2009 at 08:12
    Nnagozie says:

    what do you mean by “event risk”.

  4. Reply
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    Comment left on:
    September 3, 2009 at 13:24
    Mark says:

    “Event Risk” is a term used by traders to describe any major news events that might move the markets. So for example when the Fed announces the rate decision, that is an event risk.

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