• Recent historic volatility is still flat. ATR and Standard Deviation numbers are not necessarily lower than in July or the first half of August, but the current absence of significant price swings is something directional traders are struggling with.
  • If volatility is evoked in the stock markets via bond markets, than we could see a restoration of volatility in the FX markets as well.
  • While EUR/USD continued to chip away between 1.1300 and 1.1150, a clear break and stability on either side of this zone would help to determine the near term direction.
  • The pair is almost breaking channel resistance with risk to assault the September high at 1.1457. Above, there is plenty room for fast appreciation due to stops and USD dye-hard buyers capitulating.
  • A little wobble with a move down to short-term channel support can gather momentum to 1.10 then 1.09 en route to 1.07.
EURUSD channels
  • I'm still a touch short at 1.1189, .1181, .1171, and .1124 targeting 50 pips each. Some pending limit shorts are clustered around 1.1450, specifically at 1.1448, .1441 and .1433
  • Fresh long positioning is awaiting to be triggered at 1.1103, and below at 1.1059 or 1.1036 and more below (see chart).

EURUSD long short positions


The trading methodology reported in this analysis is based on a non-directional approach. It is meant to capture the most amount of pips from the constant price oscillations, either up or down. Each trade has a take profit of 50 pips, a stop loss of 500 pips. The size of each trade is regular, but trades can be stacked around key support and resistance zones, increasing the overall position size around certain price zones. The system can perform either in trending or range bound markets, but it suffers when there is an extreme unidirectional price advance. Buy and sell positions are taken with two separate real accounts.
To learn more about the method, you can watch these special webinar series:

Exploring the Coast Line of Foreign Exchange Land - Part I

Exploring the Coast Line of Foreign Exchange Land - Part II

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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