EUR/USD range in the last 5 hours traded 27 pips between 1.0436 to 1.0463. Why the short range is because EUR/USD traded between USD/EUR 1.0419 to 1.0472.
The higher or lower for today’s EUR/USD is found at USD/EUR 1.0419 and 1.0472. Above 1.0472 then EUR/USD runs on its own terms to target 1.0485 and overall target at 1.0501. EUR/USD achieves its target destination by a break at EUR/USD 1.0453, then 1.0472, 1.0485 and 1.0501. If a violation above 1.0501 occurred then EUR/USD 1.0504 and USD/EUR 1.0519 stops any further upward progression.
A violation of a target price is an important commentary in currency trading because it means either an interest rate was off by a basis point or the markets warns EUR/USD is heading higher in days ahead. Note targets and levels today are working on odd and even. Some days prices work on all odd or all even. Today’s range for exampole was 1.0436 V 1.0463, odd and even.
Yesterdy EUR/USD was favored by 53 V 49 USD/EUR daily pips. Today, both sides are well balanced at 53 pips each.
EUR/USD bottom today is located at 1.0396 but massive supports exists at EUR/USD 1.0450 and USD/EUR 1.0446. Both must break to target 1.0419 and the commonality for USD/EUR and EUR/USD at 1.0415. Then progression down begins to target 1.0411, 1.0404, 1.0401 and most important 1.0396. Below 1.0396 then USD/EUR stops downward moves at 1.0384.
The larger range for today is found from 1.0501 to 1.0396, 105 pip range. Why the commentary rgarding violation at 1 pip is a range break therefore range breaks hold more importance than an everyday traded level and a target.
The strategy is long on the lows and sell the tops with views at tops 1.0485 and 1.0501.
To many friends, followers and Fxstreet insiders, Please respectfully allow wishes of Merry Christmas, happy Hanukkah, Happy holidays to all and with all good fortunes and blessings of life.
Brian Twomey, Inside the Currency Market, btwomey.com