Forex Signals – EURUSD Consolidation Breakout
A slow day in the markets yesterday. EURUSD is moving in a tight range and will it break out today remains to be seen.
Let’s quickly look at EURUSD daily chart:
Daily Forex Signals (click to enlarge)
In the last 4 days, price has moved in a narrow zone. Also note that it broke below the rising trendline last week and then later moved up to re-test it. Most likely we will see a continuation of downward move. However, for a confirmed change in trend we will first need see a close above the trendline.
Today there are two important economic news items from US. First is Prelim GDP and then later FOMC Meeting Minutes. Keen an eye on the news as it comes out.
Forex Trading Signal : There are two opportunities to enter short trades. First is when price reach the top of the range at 1.3350. 1.3600 is where Trendline comes into play and it is also an area to watch for short trades. Second chance to go short will come when price break below the range boundary at 1.3430. Wait for a confirmed break and then look for shorts on the re-test.
Long trades can only be safely called once the price move back above the trendline i.e. 1.3600.
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