The
volatility on the EUR/USD has dropped to historic levels during the last few
days, due to the fact that there is no clear consensus on the future direction
of the US economy and the European Central Bank is keeping its monetary policy
unchanged. On the 4 hour chart below of the EUR/USD we can see that the pair
keeps oscillating around the 1.3600 level and the range has shrink, forming
what appears to be a symmetrical triangle with the 55 EMA as support and the
200 EMA as resistance.
On the symmetrical
triangle formations price tends to breakout in the direction that the price was
having coming into the pattern. However, it would be wiser to wait for the
breakout and then the pullback before trying to open a position. Therefore, even
though the volatility has dropped, we may get an opportunity to enter on this
pair if we patiently wait for the breakout.
Thanks for the post , and it is looks like the pair keeps oscillating around the 1.3600 level from yesterday, but till when ? we will see.
ReplyDeleteThank you. When traders become complacent, surprises happen ....
ReplyDeleteThe EURUSD went sideways yesterday, essentially embracing the 1.36 handle again. Because of this, it is very hard to trade and is essentially at the direct center of the larger consolidation area having a floor at 1.35, and a ceiling at the 1.37 handle.
ReplyDeletei dont know why the price keep losing momentum everytime it reach an important support or resistance i think its due to uncertainty from the traders
ReplyDeleteThanks for such an informative article.
ReplyDeleteThere is no volatility in EUR/USD for a while
ReplyDeleteTerrible few weeks to trade this pair
ReplyDelete