EURUSD has been trading in a tight range since the Brexit vote. I don't see any catalizers taking the price beyond 1.12 and expect this range to hold for the time being.
A convincing close above 1.12 would trigger a long setup
Today's has been an impressive bullrun. But 275 pips is way too much for a day without tangible news to be a sustainable level. In fact today we've travelled a whole weekly range (green) in comparison with the normal daily range (blue box).
Hence a 50 pips consolidation is possible
Since the beginning of April AUDUSD has been trading in a tight range. Now this 250 pip range has been breached to the downside. A daily close below 0.9203 would be a pretty bearish sign. Right now bulls are striking back, but for how long?
I'd wait for a clear break of the range and enter at a retest
After breakout of the trading range at 1.107 (green line) there's a chance for a trend change with a big upside potential.
So a retracement of AUD could offer an entry chance near the demand zone at 1.1137 or the green trend line.
Price shot through the supply area at 1.99-1.996 only to rebound at the 1.100 level - that's pretty bullish!
I took a small short at 1.0991 (SL 1.105 TP 1.095) because an entry on the Gartley pattern completed at 1.0978 offers a nice risk-reward at this level. Besides, the even handle at 1.1 will grant additional protection to my stop. But at 1.095 I'll be long...