In other words we will need further confirmation as to whether we will commit long or short. This will be determined by a few factors.
1. Does the market close above the resistance or below the support as shown on the
2. The Ranges adjust daily so keep a close watch on these. Has the Daily Range (blue/magenta dots) moved above the or below the is the key element to watch. This will determine the near term bias for long or short.
3. The same rule applies for the longer term 6 Day RPR (green/yellow dots). Each day watch for the adjusted level to determine the bias or shift in bias of the market to or .
The Daily Moving Averages (DPMA) are a lagging indicator but do provide a good indication of bias, particularly when a crossover occurs recently as has the 30 day crossing the 50 day DPMA (yellow crossing white lines). In this case the bias is .
Finally, you will notice the stack of the Weekly and Monthly Ranges which show us the longer term bias is to the upside. These indicators show us the price has support at these longer term ranges but could be tested if the price closes below support.
Stay tuned as we await new trading days to determine our outlook for a possible long term trading position for the EURUSD .
Daily Range (blue/magenta dots) | Weekly Range (orange/red dots) | Monthly Range (green/black dots)
6 Day RPR (lime/yellow dots)
Daily Moving Averages (DPMA): red=14 day, yellow=30 day, white=50 day
At this point, if you did not already enter based on the breakout level of around 1.1730 I would suggest not chasing the market and instead place a limit order on a retracement back to around 1.17520. This is about 50% retracement from the highs to the key resistance level...view the hourly chart for a better look at this.
With the stop loss that we moved up to the WPR low would have approximately a 20 pip loss. A small loss but unnecessary!
In order to capture the outsized gains of 150 - 300 pips it's necessary to give plenty of room on these stops to let the market do what it needs to in order to run the trend.