Back to the EUR
I thought we would go back and have a look at the EURUSD because it looks like it might be breaking out of its consolidation period. In the day chart below you can see that I have drawn in the support line which price has broken today. This is excellent news because it means that a short position is on the horizon. You will notice from the chart that price has been consolidating for about 2 months. Generally when price consolidates the next move in price is fairly big, so hopefully the next trend will bring us money making opportunities.
Although price seems to be breaking below the support line, it doesn’t necessarily mean that we enter a short position immediately after the BOB. If your aggressive then this might be something that you would like to do. The problem with being aggressive is the potential of a FBO. You can clearly see that price has struggled with this support area, so jumping in with both feet may not be a wise option.
Personally I will be waiting for the 2nd breakout, this way I will have more confident that the range has been broken.
What are your thoughts?
Guys I hope you have an awesome weekend and fingers crossed that the good weather continues for the weekend, which would be great because my friend is celebrating his birthday with a BBQ.
That is if Zaheer hasn’t jinxed it with his update.