EUR/USD Beginner Level trading

Price unable to break past resistance level and has reversed. I am still watching to see if it will retest the resistance level

Oh well price didnt recover from downward pressure till my SL was hit

Consider each session as a range.

So for a range breakout trader you wait for the range, and then either trade the break of the range or you simply fade the move at the edge of the range.

You have the edges acting as SR levels. Look at the example from this last week of the NY session & London session.

Price either breaks out which these days is mostly on news/fundamentals during NY, and then you wait till you have a new range.

Or we get a false break. And then come back into the range, in which case you target the other edge.

You can build own strategy around breakout of ranges. Same thing applies on lower TF as well during LO breakout.

Today i am watching the EUR/USD using two indicators: MACD and RSI. RSI shows oversold and MACD shows upward pressure so I think a down trend may be starting soon because RSI is showing oversold (RSI is above 70). When the down move starts i will enter with a short position

Red candles have started forming coupled with the fact that the RSI indicator has started falling below 70 and the MACD indicator has started showing faint green candles meaning weak upward pressure.

So i enter the market with a short position

Stop Loss 1.09256

Take Profit 1.09118

This means I'm risking $20 to make $118

This is around 1:5 risk to reward ratio

As predicted a downward trend can be seen so I just watch the market and hope it hits my Take Profit

More downward pressure seen. Mote the indicators.

The RSI indicator reading has fallen from around 70 to around 50 and the MACD indicator histogram is now showing red candles meaning downward pressure.

Sudden upward spike has hit SL

Right now USD is weak, but I think if we break the last week's high 103.5x, the 104 levels would come back into play, and close above that on weekly is important for sustained up move.

But for now, test of 102.2x again is still open, and quite possible looking at the 2D DXY chart (inversed).

These are just the levels I'm looking at, and would affect my weekly bias.

14 august 2024. EUR/USD is in a sideways trend with doji candles signifying indecision in the market

The US Dollar index shows the dollar is also strength is reducing, This should guide my decisions when trading.

Note: The US Dollar index shows how strong the dollar is in comparison to other major currencies.

A reading below 100 shows major weakness but a reading above 100 shows some strength.

Today the reading is around 102 which shows strength but it is actually in a downtrend

The market is in a sideways trend with lots of indecision partly because the US is releasing some major inflation figures today.

This is the asian session for today. If price breaks through the edges/ranges then i may trade. If not i will not trade because major data on inflation is expected by 1 pm today

Alternatively i have drawn two horizontal lines to mark the high and low of the Asian session today for better clarity.

Yes, the box looks good and the london session opened at the low of the box and is currently testing the high, a decisive break would give strong direction.
1 trade was to buy the frankfurt opening bar once it rejected the box, currently it is near the highs.

Price is testing the line i drew to mark the high of the Asian session today. If it breaks through this resistance line an upward trend may be starting

Price has broken through the resistance so i open a long trade

Stop Loss placed at 1.09806

Chart: