EUR/USD Trading Strategies: 11_19_19 | Investing.com

  


EUR/USD

The daily chart of the Forex market is in the middle of a 4 month trading range. That means that the bulls and bears are balanced. Furthermore, a trading range always has both a reasonable buy and sell setup. The bulls want the higher low major trend reversal to lead to a 2nd leg up from the October 1 wedge bottom.

However, the weekly chart has been in a bear channel for 2 years. The bears have sold every 2 – 4 week rally. They see this 3 day rally as forming a double top bear flag with the micro double top of November 6 and 7. They want a break below the October low and another new low in the 2 year bear channel.

Trading ranges constantly disappoint bulls and bears. Every move up or down is more likely to reverse than to begin a trend. Consequently, this 3 day rally might test down to the November 14 low before reaching the October high.

Even though the weekly chart is in a clear bear trend, the daily chart is in a trading range. Traders continue to sell rallies, buy selloffs, and take profits every week or two.

Overnight Trading

The 5 minute chart of the Forex market has been in a 20 pip range overnight. Traders are deciding whether the 3-day rally will continue up to the October 31 high or reverse down to the November 14 low.

Yesterday’s high and the November 6 and 7 highs are important resistance. Unless the bulls get a breakout above those highs today or tomorrow, they will exit. Traders would then expect a test of the November 14 low.

The lack of momentum overnight is a sign that traders will probably need another day to decide. Consequently, day traders will continue their overnight scalping today unless there is a surprisingly strong breakout up or down today.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link