Well it looks like my bias for more of a down move on the EUR/USD below the 1.2600 level has not come into being just yet. The pair is still continuing to consolidate and shake out the longer-term short trades (mine included) as it inches is way above the 1.2700 level. Lots of resistance to be had up above, but since we are at the end of the week, I’m taking the next day off while this currency pair makes up its mind with regards to the next trend.
Anytime you are in a ranging market, daily pivot points work quite well at predicting price action. As I mentioned in my post below, I have been looking for opportunities to short this pair all week, so I wanted to share how well the daily R1 worked for me at picking price levels at which to enter the market. On Tuesday the weekly S1 and daily S1 combined to give me a decent buy level, but I also waited for it to also reach the daily R1 at which time I closed that position and entered a new short position. Being adaptable is the new of the game. Here’s a pick. Post questions below!
For more about using Pivot Points, check out this brief lesson: Pivot Points
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