EUR/USD is in a textbook range pattern!
Will the range hold for another day?
Or will we see a breakout in the next trading sessions?
If you squish your 1-hour charts a bit, you’ll know that EUR/USD has come a long way from its 1.0530 lows in March.
But the pair has paused its uptrend and now it’s trading between the 1.0940 support and 1.1075 resistance zones.What makes the pair interesting today is that it has just bounced from the range support and it looks like it’s on its way to the 1.1000 psychological level near the middle of the range and the 100 and 200 SMAs.
Buying at current levels would set you up with a good risk ratio especially if you place your stops just below the range support and aim for the mid-range or range resistance levels.
Not feeling like buying EUR against USD?
You can also take cues from Stochastic and aim for EUR/USD to drop back to its 1.0940 support as soon as you see the oscillator turn lower from its “overbought” zone.
Whichever bias you choose to trade, make sure to note EUR/USD’s average volatility and that you’re following your trading plan in your decision-making!