EURUSD channels


  • When the ECB announced more straight QE and deeper negative rates the EURUSD jumped from 1.0950 to the by-then potential resistance around 1.120;
  • After that, the Fed adjusted projections for interest rate hikes for this and further years lower from four to two hikes;
  • The pair visited the high of February 11th, a key reversal date in many other markets and reverted back to where we are at time of writing;
  • A break-out through the 1.13 resistance handle would force shorts to cover and be an invitation to momentum traders to enter the market and take the pair to the upper boundary of the ascending channel now at 1.1470 and ascending 25 pips per week (approx.);
  • On the down side, a slide below the current tentative support at 1.1150 gives the sellers a reason to charter the below ascending support at 1.0850 and below at 1.0770 both diverging;
  • The direction should be spelt out in the upcoming two weeks as other major markets are at key technical and near cyclical time bands;

EURUSD channels

  • Be aware that further gains meet a selling opportunity at 1.1199, 1.1246 for small gains, and then above at 1.1440;


EURUSD long short positions

  • Having much less long trade open at the moment the most sensible option is to increase the longs substantially if the February highs are broken. Right now, discernible buy points are 1.1070 where I've two orders sitting but below is thin air.



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.

Recommended Content


Recommended Content

Editors’ Picks

BoE set to maintain bank rate at 5%, how will Pound Sterling react? – LIVE

BoE set to maintain bank rate at 5%, how will Pound Sterling react? – LIVE

Following August's 25 basis points cut, the Bank of England (BoE) is forecast to maintain the bank rate at 5%. The statement language and the vote split could provide important clues about the policy outlook and drive GBP/USD's action.

FOLLOW US LIVE
EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD stays strongly bid toward 1.1200 in the European session on Thursday. The pair capitalizes on a renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed. 

EUR/USD News
Gold hovers close to new high of $2,600 after Fed meeting

Gold hovers close to new high of $2,600 after Fed meeting

Gold (XAU/USD) edges higher and trades back in the $2,580s on Thursday after falling to the $2,540s following the US Federal Reserve (Fed) decision on interest rates the prior day.

Gold News
Solana announces details of Seeker, second mobile device after Saga phone

Solana announces details of Seeker, second mobile device after Saga phone

Solana Lab’s second phone, Seeker, is set to launch in 2025. At Token2049, a global conference for crypto, Solana’s General Manager Emmett Hollyer said that the new mobile would be a “rewards magnet” for its users.

Read more
BoE expected to keep interest rate unchanged at 5% as price pressures persist

BoE expected to keep interest rate unchanged at 5% as price pressures persist

After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures