“Tight” is the best way to describe today’s forex session. Rates across the majors have entered consolidation as traders digest the latest injection of U.S./China trade war uncertainty. In addition, the wide-open U.S. economic calendar has brought little movement to the Greenback. For the time being, the EUR/USD, USD/CHF, and USD/CAD are in holding patterns.
No doubt about it, range-bound currency pairs are a challenge to trade. However, given reasonable profit targets and tight stop losses, rotational markets can be profitable. Let’s take a look at a quick short-side scalping plan for the EUR/USD.
Scalping The EUR/USD
At press time (about 12:30 PM EST), the EUR/USD is threatening to extend today’s tiny 29 pip range to the downside. In the event the bearish pressure subsides, a short scalp from topside resistance may come into play later on in the session.
+2019_05_08.png)
Here are two levels to watch for today’s EUR/USD market:
- Resistance(1): Bollinger MP, 1.1227
- Support(1): Daily SMA, 1.1191
Bottom Line: With a bit of luck, rates will rotate back above the 1.1200 handle during late-day trade. If so, a short scalp from the Bollinger MP will set up for the coming U.S overnight session.
Until elected, I will have sell orders queued up from 1.1223. With an initial stop loss at 1.1232, this trade produces 8 pips on a slightly sub-1:1 risk vs reward management plan.
If you are actively trading the forex, remember that the coming U.S. overnight session features China’s CPI (YoY, April) and tomorrow’s pre-Wall Street open has Jerome Powell issuing public comments. Both are likely to bring action to the USD ― be sure to have your stops down and leverage in check ahead of each event.
Alerts
Rates
Calendar
Signals
Top 4 Brokers
