Market Condition: EUR/USD Pending Breakout
Target 1: 1X Range Bullish 1.0807 Bearish 1.0441
Target 2: 2x Range Bullish 1.0929 Bearish 1.0319
(Created Using TradingView Charts)
The EUR/USD is consolidating for today’s trading and set to conclude Tuesdays trading with the creation of an inside bar. This price pattern, as depicted above, has been created with the EUR/USD failing to exceed Monday’s high or decline below the previous sessions low. These points may now be considered values of support and resistance, and traders may consider using them for the EUR/USD’s next breakout. Bearish breakouts may begin beneath support found at 1.0563, while bullish breakouts may be initiated above Monday’s high of 1.0685. The identified range measures 122 pips, and traders may use this value to find initial profit targets. A 1x extension of the range places bearish targets at 1.0441, and bullish targets at 1.0807.
While it remains possible that prices fail to breakout, in this scenario traders may elect to trade the range or wait for a breakout using entry orders. Also, it should be noted that false breakouts may occur. In the event of a market reversal, traders may consider using ½ the distance of the identified range to create a 1:2 risk reward ratio.
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