EURUSD Consolidating At Key Level, Awaiting Consolidation Breakout
Cory Mitchell, CMT
The EURUSD declined and entered a range on March 19. Since then the price is moving between resistance near 1.0830 and support between 1.0650 and 1.0635. The range is showing using a regression channel.
The price is currently consolidating—small sideways price movement—near resistance. A 15-minute chart is shown.
If the price breaks the consolidation to the downside, it indicates that the range is continuing. Until other evidence is provided, I would expect the price to continue lower. Targets are placed near the bottom of the range.
If the price consolidates near the bottom of the range, that will present another opportunity to trade in either direction.
An upside breakout of the consolidation is also tradable, as it indicates a breakout of the multi-day range. The upside target is 1.10, although, a trailing stop loss is preferred (for a downside breakout as well). Renko charts work quite well as a trailing stop loss and for keeping a trader in the trade while it is still running favorably.
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By Cory Mitchell, CMT. Join me in my free Facebook swing trading group.
Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.