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Currency market: EUR/USD day trade

EUR/USD

Long Short Line 1.1304.

Most Important 1.1271 and 1.1283 Vs 1.1311, 1.1318, 1.1325, 11332, 1.1346, 1.1353 and 1.1361.

Bottom 1.1247 achieves by 1.1275 and 1.1261.

Upper target 1.1361.

Continuation Fail 1.1332.

Range 1.1309 to 1.1292. The level at 1.1292 traded at 1:30 am at the start of today's day trade. To exclude 1.1292 then EUR/USD in 5 hours traded 9 pips from 1.1309 to 1.1300.

EUR/USD day trade today is the exact same trade as Asia last evening as follows.

Today EUR/USD day trade

Long Short Line 1.1304.

Most Important 1.1271 and 1.1283 Vs 1.1311, 1.1318, 1.1325, 11332, 1.1346, 1.1353 and 1.1361.

Bottom 1.1247 achieves by 1.1275 and 1.1261.

Upper target 1.1361.

Continuation Fail 1.1332.

Ranges and bottom supports at 1.1271 and 1.1283 remain the same due to day trades from the same set of interest rates.

Recall Monday's trade from 9:00 am to 11:00 est.

EUR/USD 9 am to 11 am.

Long Short Line 1.1304.

Most Important 1.1267 and 1.1283 Vs 1.1311, 1.1318, 1.1325, 1.1332, 1.1346, 1.1353 and 1.1361.

Bottom 1.1247 achieves by 1.1275 and 1.1261.

Upper target 1.1361.

Continuation Fail 1.1332.

Range remains the exact same but bottom 2 supports changed from 1.1267 and 1.1283 to 1.1271 to 1.1283.

The day trade is officially dead and gone. The central banks managed to blur the distinction between nation's interest rates by a distance of a 2 pip interest rate differential. This means EUR/USD and USD/EUR are the same traded instrument with a 2 pip interest rate differential. GBP/USD is no different from USD/GBP and USD/CAD from CAD/USD.

The key and success of past profits to day trades was the massive distinction between nation's interest rates so EUR/USD and USD/EUR had wide ability to trade.

Past day trades contained ability to trade full ranges for multiple profits in longs and shorts from upper highs to bottoms and bottoms to upper highs. This is no longer the case. Only on rare instances will a full range trade.

Central banks informed in 2015/ 2016 the only chance to profit from day trades was by news events only. This was true for past years as full ranges traded however today, news events are worth 20 ish pips and central bank meetings worth at most about 40 and 50 pips. Sometimes trade in the same direction and other times not.

While EUR/USD for the week traded 1.1343 to 1.1262 or 80 pips in 3 days, broken down by day trade times reveals EUR/USD traded something like 10 and 14 pips per hour over 3 days. Or 25 pips per day over 3 days.

All currencies trade the same day trade existence. Cross pairs pretty much move on a 1 to 1 basis to anchor currencies. Cross pairs were once the best trades as ranges exceeded anchor currencies but this is no longer the case.

A serious strategy adjustment is required to trade today's markets and the strategy must be dam good. For the day trade exists one shot per 7 hour day trade for American markets. Miss the chance then no shot at profits exists.

Why one short because for the vast majority of the 7 hour day trade, the price trades at neutral and neutral isn't a trade able condition.

An as expected new release will for example see no movements and the price will remain in neutral. An off kilter news release is worth about 20 pips.

Today is Fed and Bank of Canada day. What to expect, 20 and 50 pips or nothing at all. For OIL and Gold trade far less day trade ranges than EUR/USD and all currencies. Currencies is the better trade and better chance to profit than Oil and Gold.

Author

Brian Twomey

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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