EUR/USD Closes Week With an Inside Bar
Market Condition: EUR/USD Pending Inside Bar Breakout
Target 1: 1X Reference Bar Extension
Target 2: 2x Reference Bar Extension
Invalidation: False Breakout, Continued Consolidation
(Created using Marketscope 2.0 Charts)
The EUR/USD has continued to consolidate through this mornings NFP event. If prices fail to breakout to a new significant high or low, the pair will close the week with an inside bar. This candline pattern can be seen above, begnining with yesterdays daily candle working as a reference. Yesterday’s high at 1.1492 is currently acting as resistance, and the low at 1.1384 is working as a value of support. In the event that prices breakout, either above resistance or below support, traders may then plan to enter into new positions with the markets chosen direction. Initial breakout price targets may be found using a 1X extension of the previously mentiond 108 pip reference bar. This places bullish breakout targets near 1.1600 , along with initial bearish targets at 1.1276.
If price action remains inside of the designated values of support and resistance, it suggests that there may be continued consolidation in the EUR/USD. In this scenerio, traders may opt to trade the continued consolidation or maintain any entry orders pending a future breakout.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.