On this pair we can see that it is currently range bound and coming to a close for the trading week. We can see on multiple timeframes that the range is respected as of now, with the major support levels around the 127.6 region, and minor resistance around the 128.1 region. The idea for this trade is a simple break and buy concept during the Asian or the NY session, alongside potential scalps within the range itself when price fails to break the range. For the buy this could signal the potential end of the retracement from the top to continue going higher for a potential 70 pip range with minor traffic at TP1. For the sell this could continue the move down to the major support and retest the lows for a potential 40 pip range with minor traffic at TP1. For the better entry confirmation, a retest of the previous support/resistance would be ideal or a break and close on a higher timeframe such as the hourly. Now should the price fail to break the range support or resistance, this can potentially lead to some scalp opportunities by trading from support to resistance or from resistance to support, which I potentially might do with the range being 50 pips.
Trade ideas are considered with a 10 pip stop loss for the example, and would likely change due to candle structure and entry.
Trade ideas are considered with a 10 pip stop loss for the example, and would likely change due to candle structure and entry.