EUR/USD Forex Day Trading Signal – 15 Min Chart
| May 7, 2009 | Posted by admin under Day Trading Ideas, Swing Trading Ideas |
May 07 2:14 AM GMT
The following is a forex market commentary based on technical analysis for the EUR/USD currency pair. It is based off of a 15 minute chart. Trading ideas or trading signals can be generated based on your own risk tolerance and time frame. Please read the latest How to Use the Trade Ideas blog if you have questions. If you still have questions after, feel free to comment.
From looking at longer time frame charts we can see the EUR/USD is consolidating and has continually narrowed its range over the last 24 hours. This has created a triangle formation, providing an excellent trading opportunity. A break outside of the chart formation would offer a profit target of 120 pips from the breakout price. A second profit target would be 180 pips from the breakout price.
Currently the upside breakout price is 1.3340 and the downside breakout price is 1.3285. These will gradually change over time as the upper trend line is downward sloping and lower trend line upward sloping.
Currently the pair trades as 1.3315.
Source: Forexyard
~Cory Mitchell, CMT
Market Strategist
Remember, failed breakouts are tradeable too!
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There was some choppy trading which meant two false breakouts. Since the last false break was near the apex of the triangle stops should have been quite small and the trade still resulted in an overall profit.
But, there is an interesting dynamic here and several of you may be asking yourself some questions, so I am going to make a post about what to do in situations like this where we get two or more false breaks. I will try to get that up over the next couple of days.
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