EUR/USD: Is It Set for a Breakout?
Updated
The pair has traded within a fairly tight range last week, ending near the point of control (POC). Price failed to break the April, 2022 lows, therefore, it's hard to predict where the EUR is heading next week, technically speaking.
However, we anticipate a potential breakout scenario, where it may be bullish or bearish. This anticipation is backed by the two-days value area relationship of an Inside Value, that may be seen as a breakout.
So, my strategy would be is: To observe the opening price for next Monday 09th May, 2022, and wait to register a session high and low in order to determine where we would go from there.
Stay tuned, and see you all on Monday 09th May @ 14:00 GMT for an update
However, we anticipate a potential breakout scenario, where it may be bullish or bearish. This anticipation is backed by the two-days value area relationship of an Inside Value, that may be seen as a breakout.
So, my strategy would be is: To observe the opening price for next Monday 09th May, 2022, and wait to register a session high and low in order to determine where we would go from there.
Stay tuned, and see you all on Monday 09th May @ 14:00 GMT for an update
Note
Opening Price @ 1.0544
The opening is a very crucial point in my strategy. Price is also at the VWAP indicator which shows that it is at fair price by buyers and sellers.
Now, I would wait for a session high and low to form in order to determine the side of the market (Bullish or Bearish).
I will meet you all back on 09 May, 2022 @ 14:00 GMT for further comments
Note
Now, we have our Session High for this pair @1.0573, so, we have a channel created, and price is within this channel. Our next move would be is allowing price to exit the channel in order to determine the direction of the trade
Note
I could initiate a Long trade for this pair at the POC level, with a stop @ 1.0490 just below the low of the session and targeting the (VH) level.Note
Note
The logic behind this trade is that Initiative Buyers may start driving price higher from the POC. This is backed up by price being above the VWAP line. The target specified is where Responsive Sellers are ready to counteractNote
Note
How do I know if this is a losing trade?If you've noticed the price in relation to the VWAP line, if the current candle closes below the VWAP, this may be considered a losing trade, even if we haven't reached the stop loss.
What to look for after realizing a losing trade?
You should start planning for a bearish trade (Planning not Trading).
Note
Note
It seems that Initiative Buyers are in control. Price has breached this week's session high. This could be a starting point for a Long trade in the future if we are successful in reaching the VH level - where we exit the current trade -, and target both the VH again and beyond to the VVH level
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