EUR/USD in textbook range pattern!
Will the range last for another day?
Or will we witness a breakout in the upcoming trading sessions?
EUR/USD for one hour in forex Planned by TV
If you crush the hourly charts a bit, you will know that EUR/USD has come a long way from the lows of 1.0530 in March.
However, the pair has stopped its bullish trend temporarily and is now trading between the support areas of 1.0940 and the resistance of 1.1075.
What makes the pair interesting today is that it just rebounded from range support and seems to be on its way to the psychological 1.1000 level near the middle of the range and the 100 and 200 SMAs.
Buying at current levels would set you up for a good risk ratio especially if you place your stops just below range support and target resistance levels in the middle or range range.
Wouldn’t you like to buy the euro for the US dollar?
You can also take cues from Stochastic and aim for the EUR/USD to drop back to the support level of 1.0940 once you see that the oscillator is turning lower from the “overbought” area.
Whichever bias you choose to trade, make sure you note the average volatility of EUR/USD and that you follow your trading plan in your decision-making process!