EURUSD is in balance (consolidation) now with a range levels 1.2218-1.2295. In Friday we saw a false break down of this balance.
What to do now?
There are 3 options in this case:
p 1. Trade after consolidation will be break up.
If the price breaks out level 1.2295 and holds above, we must wait for a correction to upper balance level and than buy.
p 2. Trade after consolidation will be break down.
If the price breaks out level 1.2218 and holds below, we must wait for a correction to lower balance level and than sell.
But you must remember - if false break out/down happens and the price will return back into the balance you need to close position immediately.
p 3. Trade inside the balance from the lower balance level (it's not recommended to trade against a false break out/down). In this case you need to put stop below the false break down.
What to do now?
There are 3 options in this case:
p 1. Trade after consolidation will be break up.
If the price breaks out level 1.2295 and holds above, we must wait for a correction to upper balance level and than buy.
p 2. Trade after consolidation will be break down.
If the price breaks out level 1.2218 and holds below, we must wait for a correction to lower balance level and than sell.
But you must remember - if false break out/down happens and the price will return back into the balance you need to close position immediately.
p 3. Trade inside the balance from the lower balance level (it's not recommended to trade against a false break out/down). In this case you need to put stop below the false break down.
Trade active:
Trade recommendation:
Entry point - 1.2295-1.2300
Stop - 1.2250
Target 1 - 1.2380
Target 2 - 1.2415
Trade recommendation:
Entry point - 1.2295-1.2300
Stop - 1.2250
Target 1 - 1.2380
Target 2 - 1.2415
Trade closed: target reached