Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading Premium Services.
The eurusd currency pair, although the most popular amongst traders, has been stuck between weekly resistance at 1.2950, and 4 hr support at 1.2900. Price remained firmly within this very limited range since Friday. On the daily chart below you can clearly see that price is currently trading just below the resistance line. The 4 hr timeframe below the daily also shows price holding above the 4hr trendline. The trendline broke briefly on two occasions, but promptly popped back above the trendline.
This price action tells me that there is a very strong bullish bias. The engulfing bullish candle on the daily that closed at 1.2915 right after the bearish one, also speaks volumes.
Trading Strategy
Due to what I explained above, I currenly am standing aside on the eurusd. I am, however, anticipating a possible breakout, and will be prepared if/when it takes place.
I am watching for a daily close above 1.3050 (a clearance of the daily resistance highs) in order to position bullish. The green lines on the chart point out my areas of target. Assuming that the setup plays out, I will buy towards 1.3260, and then 1.3600
If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
Thanks as always for reading. You can also view my last post here: http://www.winnersedgetrading.com/eurjpy-technical-analysis/
Other useful blogs:
Forex Crunch: 5 Reasons Why The Stress Tests Could Hurt Eur/Usd
The GeekKnows- Daily commentary on eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.