EUR/USD In Tight Trading Range

EUR/USD
-0.18%

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EUR/USD Daily Chart

• The EUR/USD market has been mainly going sideways in the overnight session.
• Traders should expect a trading range open and not be too eager to bet on trending behavior.
• Most traders should wait 6-12 bars before placing a trade. This is because the odds favor sideways, meaning most breakouts fail in the first hour. Since most traders should avoid limit orders, they should step aside until there is a credible stop entry or breakout with follow-through.
• A credible stop entry could be a double top/bottom or a wedge top/bottom.
• Bears will try and get a bear trend day and get follow-through after the September 12 selloff, so traders should be open to a trend day.
• However, if today is going to be a trend day, there will be plenty of time to enter in the direction of the trend so traders can wait for a clear breakout with follow-through.
• The essential thing on the open is to be patient. Everyone wants to trade, but you do not get paid for placing lots of trades. You get paid for taking good setups that have strong math behind them.
• Remember that most breakouts fail on the open, so there is no rush to enter.

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