Today will be a big day for EurUsd. There's important U.S. economic data to be released and prior to that theres EU inflation data (38min from this writing). Personally I think that the U.S. data will be dissapointing and will make the Euro stronger. This will cause a breakout of the range and price might continue to 1.1155. However if the data does turn out to be good and boost the dollar then EurUsd will be on its way again towards the lower range which is at 1.0650.
You can also see that the price did break-out a bit a few days ago and fall back down. This doesn't have to mean that the 5th wave is completed. It can be a correction wave which is logical after such a strong move up.
How To Trade
- Wait till the U.S. economic data is released today, if it's bearish and the EurUsd will break out of it range then buy it with a target of 1.1150.
- If the data is bullish and the dollar gains strenght then sell EurUsd with a target of 1.0650.
- Optional, the Adx and Stoch rsi are pointing at a bearish crossover. This indicates that price has a high chance to fall back to the lower range. So based on this you could sell it at the current market price. That is if you dont believe in economic data and soley go by the charts.
You can also see that the price did break-out a bit a few days ago and fall back down. This doesn't have to mean that the 5th wave is completed. It can be a correction wave which is logical after such a strong move up.
How To Trade
- Wait till the U.S. economic data is released today, if it's bearish and the EurUsd will break out of it range then buy it with a target of 1.1150.
- If the data is bullish and the dollar gains strenght then sell EurUsd with a target of 1.0650.
- Optional, the Adx and Stoch rsi are pointing at a bearish crossover. This indicates that price has a high chance to fall back to the lower range. So based on this you could sell it at the current market price. That is if you dont believe in economic data and soley go by the charts.