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Forex traders need to recognize this chart technical setup that is
breaking the original trend. The pair is in a downtrend on the four
hour chart and many times if you are day trading you will see this on
a 5 minute chart. and because it looks like it is retracing, You can
use the Fibonacci tool to find potential resistance points.
It looks like the price between 1.3750 to 1.3850 may be a great area for a
possible trade, and depending on price action and volume. You could
make a trade in this area on the chart. It looks like traders could
push up the market to that area as stochastics show the pair is just
coming out of an oversold environment.
The forex news from the U.S. is that 9.7% unemployment rate may be attributed
to those who were looking for jobs have stopped looking, thus
decreasing the labor pool. Any economic news can effect the forex
market and change the trend. If you are day trading make sure to check
the trend on the 15 or 30 minute charts.
The U.S. jobs picture looks confusing at the moment, but potentially
worse after the previous month reports. If it doesn't start picking up
you can look for traders behavior to continue to pick up, and that may
pose well for the USD.
So, as the chart shows traders should start to short EUR/USD if the market
reaches the potential resistance area marked on the chart. It is best
to wait for the new candle to start forming before you enter the
trade. Remember to
set your stops and use a following stop when your in the money.
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