Euro & Cable – Price Action Says “Stay Out”

Hi All,

This is just a quick update on EURUSD and GBPUSD.

23 Apr - EURUSD Daily

(Click on image for larger view) 

Price Action on the EURUSD chart above shows me a bunch of signals. However, when I take a step back, all I see is a mess.

On my market update video posted on 9th April (watch video), I was expecting a short term resistance around 1.313. Since then, price stalled below that resistance and, on 16th Apri, price action gave me a bullish signal. Unfortunately, the long bull bar was followed by a long bear bar. This was a great indication of a false break from the short term resistance.

Great! We have a short signal (I thought to myself)!! Well… False alarm! Price did not follow up with the false break. In fact, price continued to mess around when it showed a Barb Wire (High Test Bar followed by Low Test Bar).

23 Apr - GBPUSD Daily

(Click on image for larger view) 

The GBPUSD chart above paints a similar picture. In fact, price action on Cable is slightly clearer, all you have is a nicely defined range.

As you can see, anything can happen in the market. The key, however, is to always step back to see what price action is tell us. Just to be clear, I am a swing trader and, hence, range market does not really work for me. If you are a range trader, then, price action might be in your favour.

Anyway, thank you for reading and happy trading!!

 

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