EUR/USD Remains Range Bound – October 9th 2015 Forex Market News
EUR/USD Still Stuck In Range
Since the end of September the Euro has been stuck in a range bound market. I don’t mention this to say that a range is a bad thing just to point out the current situation. As I have stated many times before I prefer a market that is more range bound as compared to aggressive and straight movements. When a trade sets up from a market range you have a very high reward to risk trade setup. This is exactly what we had occur today from the range highs around the 1.3000 area which produced a full +4% trade (based off 2% initial risk).
Today I will continue with the same open bias as yesterday. I will also be adding in one lower manipulation point from which I would consider going long. I do hesitate to use a level that is not near the extreme of the range. With that being said the level has been quite significant and therefore I have included it. This also stresses the entry criteria as level selection is just one part of the process. The market still must come into that level and produce a valid confirmation entry to price a trade setup and entry.
Pound Continues To Rally
At the beginning of the week we called the GBP/USD perfectly with the expected upside move. As of right now I think predicting the next direction is significantly more difficult considering how far we are into the move. As I look at the daily chart of the EUR/GBP it does look quite bearish. Considering that, I would expect to at least have some continued upside movement today. Whether it holds or not is a completely separate question.
Right now the 1.5370 area is critical. If that breaks and holds then there is nothing to really stop the price from continuing up. This area could be both a great continuation or reversal area depending on what we see happen. If the market were to fall from this area and come back into it for a stop run it could be a great short. If however the market continues through this level and then comes back into it from above then we could see a backside of the level stop run for a nice long setup. As always you can identify the trigger point but it is then up to the market to validate a trade by satisfying the entry criteria.
Forex News For October 9th 2015
CAD Employment Change 8:30 AM Eastern: CAD Employment Change is the Canadian equivalent of the US NFP and as such is quite important. We went through a stretch where it produced very little price action but as of late it has been coming into focus a bit more. This month 10.5K is the expected number.
Want to learn the bank trading strategy, join our weekly live training room, talk to members in our forum, and have access to lifetime support? Learn more here.