I've been getting many questions about where EURUSD is headed, when its going and how its going to get there. The answer is as complicated as you want it to be. There is quite a bit of waiting and patience involved in trading the currency markets, the post I made regarding EURUSD was in reference to what I called a Super Trend, a weekly time frame trade. Each Candle represents essentially 168 hours of time (120 hours if you're exclusively counting time that the markets are open). There is A LOT of time for smaller time frames to generate or opportunities while still maintaining the Super Trend I described.
This post isn't really a trade opportunity but more a little bit of insight into how I start to look at my charts given my simple trade style. Here's what we know.
- 1.1070 and rising was a key resistance, this was the weekly candle close we had giving strong reason to be in the Super Trend, it is not a level to be ignored.
- 1.0900 area and rising is the last actual potential we had to support the bulls on the higher time frames...The market reacted to it on first approach...do not ignore
- Since our initial break of 1.1070 we have not only made lower highs....but they are uniform, we can connect a line between them.
Here is the 4 Hour Chart to illustrate those uniform lower highs:
Nobody knows where the market is going to go 100%, we can just look at the charts and make the best educated and well informed decision. While we keep in mind the overall higher time frame Bias....ask yourself, what can happen that will keep this bias intact.
- A rise to 1.1100 and a bounce off the first we broke would keep that bias complete.
- A sudden drop below/break of 1.09 levels would confirm
- Even minor sells to keep the uniform lower highs on 4 hour/1 hour charts would support the bias
Once a break of 1.09 is confirmed....there are no more supporting , only structural horizontal supports near 1.08-1.0840, and down closer to 1.05 and 1.06...Time will tell where we stop/if we do.
There are a lot of tools and things to see while looking at the charts across multiple time frames. Keep everything relative, as the market continues to progress through time, try to see the forest for the trees and understand what the market's intentions are. Don't get caught in the middle, buy low and sell high all with good reason.
I hope this post has helped and given some traders a little insight into how to look at the market progression.