EURUSD continues to trade stuck in the 150 pips range. Although the pair did break out of it intraday there is yet to be a close outside the well-defined range.
One thing, different from last week that we can note is the falling trendline (dotted blue line) that may give some early clues on the direction in which the pair will break out. If the falling trendline holds a downside breakout will be more probable while if the market breaks it and closes above it then it’s more likely it will continue to move up outside of the range.
EURUSD Daily chart – Completely stuck!
Ongoing weird looking price action on the 4h chart. A broadening wedge has formed here, and while it is generally an ending pattern when it appears in a trend, in this situation there is no preceding trend. So, in some instances, a broadening wedge can be considered a starting pattern of a new trend.
What it will turn out to be is hard to tell at the moment and we can not confirm the direction until we get a close outside of the range on the daily timeframe.
The RSI continues to pick tops and bottoms beautifully.
EURUSD 4h chart – Broadening wedge formation
The earliest clue for the future direction of EURUSD will probably be shown on the 1-hour timeframe on the breakout of this descending channel. Since the price action is currently close to the upper border of the channel traders need to pay particular attention to how the pair will trade around it (1.1185 – 1.12 area).
In this regard, trading off it is also acceptable. For example, if the price goes up to the upper trendline but reverses again selling that reversal will be a good trade with a tight stop and good reward potential to the downside which would be the lower border of the channel towards 1.11 – 1.1090.
EURUSD 1h chart – Watch the upper border of the channel
Our Recommended Binary Options Brokers to trade EURUSD:
Best Regulated Broker
IQ Option is the world’s leading EU regulated broker based with a revolutionary platform for all traders. Read IQ Option Review
- Best Trading App for Binary Options
- Minimum Deposit of only $10
- Minimum Trade of $1
- Trusted Broker
- $1,000 Virtual Funds ( Demo Account )
- Quick Withdrawals
- Outstanding Platform
- Weekly Tournaments
- Gain up to 92%*
Best US Broker
Finpari is a trusted international broker accepting clients from USA. Read Finpari Review
- They accept US clients
- 1-Hour Withdrawal
- Paypal & AMEX Accepted
- $1 Minimum Trade
- Huge Bonuses
- Highest Returns
- Weekend Trading
- Free Education
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
Latest posts by James Martin (see all)
- BTCUSD – Weekly outlook for Bitcoin Price – November 21 2019 - November 21, 2019
- USDSGDWeekly outlook for Singapore Dollar – November 14 2019 - November 14, 2019
- BTCUSD – Weekly outlook for Bitcoin Price – November 7 2019 - November 7, 2019