2015-07-28_10-59-30eurusd1 hour

Price on the EURUSD 1 hour chart has begun the day retracing much of the previous move.

Since price has been providing us with higher highs and lows on this time frame we try to have a bullish trigger to long this pair.

To do this we use the Fib tool to fine tune our entry levels. If price passes those levels our trade plan looses its validity and we have to switch our technical bias from bullish to bearish.

Therefore the green arrows at the chart point to the more common Fib levels from where an entry could be taken.

The whole 38% to 62% area can be seen as a buy zone. How does a trader know if price will hold at this area and not just zip right through it?

We aide ourselves with a smaller time frame when price is at those levels.2015-07-28_11-12-06eurusd

Now we see a 5 min chart and price coming towards our levels of interest.

To be sure that price is reversing we must wait for a reversal pattern to play out.

If no pattern is given we pass on the trade. So from where you see the green arrows is where we expect possibly bouncing of price.

Bigger green candles should be seen compared to red ones. This just means that the institutions are entering the market with enough force to be able to turn the market.

One thought on “EURUSD Setup”

  1. sailor sauce says:

    Great article Nuno- very clear and easy to follow instructions-Thanks

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