I want to look through eur/usd price action today. If you remember the pair was in a bearish mode since last Wednesday and turned around yesterday. It ran up and closed above Tuesday’s high. It means, that today from day trading perspective we had to look for a bullish set up to go long or simply to wait for a dip and a bullish price action afterwards to take a long position.
Could there be a better option than to look for a dip below Asian session low and a reversal there? I don’t think so! That’s precisely what happened today. After London open price slipped below Asian session low and at 07:51 GMT price reach its’ low of the day. It then formed a bullish W pattern and rallied upwards. You should have gone long at the close of 08:15 GMT 15 minute candle (at around 1.1125) with a stop loss below the low of the day at 1.1105 and exited either before US session started at 1.1180 level or even number of 1.1200, or you could keep your position still open for a further upward swing that might take you to 1.1400 level by the end of the week (tomorrow). Well, that’s not for sure, but likely.
See you with the updates on the market price action tomorrow.