EURUSD, week 50 analysis for week 51, profitable conslidation.
Week 50 sees the whole week in zone 1, with a full range of roughly 170 pips movement through Monday to Friday. I did a couple of long and short within this consolidation and fortunately, it is wide enough for day traders like to me net a profitable week by trading EURUSD, GBPUSD, USDJPY and, USDCHF.
The analysis points us towards a bull trend, even though the low of zone 1 did go back to the low that reversal W has touched. Such price movements have happened before when the level 1 zone went back up to the low/high of the preceding W/M. Such moves would have made the long exited or started shorting, and tempt the shorters to increase their position. Either way, big contracts would have been entered and piled up in such a situation when the consolidation lasted for a couple of weeks in a big range from between 120 pips to 200 pips.
From the chart, we can see an extended zone 1 which lasted for 3 weeks. Within that zone, if you are day trading or following micro trends, there would be many long and short opportunities lying around for us to pick. You need to combine the H1 chart with the M15 chart and trade on a daily basis to capture the movements. If you are trading on an H4 or D1 chart, chances are you would have taken lesser trades, but remain profitable on a bullish outlook.
With the price movements, trend and chart patterns, I am in the view of continuing to look out for buying opportunities characterized by price levels and candlestick patterns. Breakout traders would have shorted as price broke below 1.13042, however, do note that it went back to zone 1 before the closure of the market on Friday. With such pullback, I caution against shorting. Stay flexible to changes in trend, and make the necessary change in outlook if needs arise.
If you have any thoughts on EURUSD's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like and share this analysis, and follow me for my weekly updates! If you would like to see how I enter and manages my trade, it would be shared on Twitter (@xunnobi) and StockTwits (@xunnobi)
The analysis points us towards a bull trend, even though the low of zone 1 did go back to the low that reversal W has touched. Such price movements have happened before when the level 1 zone went back up to the low/high of the preceding W/M. Such moves would have made the long exited or started shorting, and tempt the shorters to increase their position. Either way, big contracts would have been entered and piled up in such a situation when the consolidation lasted for a couple of weeks in a big range from between 120 pips to 200 pips.
From the chart, we can see an extended zone 1 which lasted for 3 weeks. Within that zone, if you are day trading or following micro trends, there would be many long and short opportunities lying around for us to pick. You need to combine the H1 chart with the M15 chart and trade on a daily basis to capture the movements. If you are trading on an H4 or D1 chart, chances are you would have taken lesser trades, but remain profitable on a bullish outlook.
With the price movements, trend and chart patterns, I am in the view of continuing to look out for buying opportunities characterized by price levels and candlestick patterns. Breakout traders would have shorted as price broke below 1.13042, however, do note that it went back to zone 1 before the closure of the market on Friday. With such pullback, I caution against shorting. Stay flexible to changes in trend, and make the necessary change in outlook if needs arise.
If you have any thoughts on EURUSD's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like and share this analysis, and follow me for my weekly updates! If you would like to see how I enter and manages my trade, it would be shared on Twitter (@xunnobi) and StockTwits (@xunnobi)
