EURUSD – Double Top and A Potential New Low?

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This is a quick email to cover my market observations at the moment.

The chart above is a EURUSD 4hr chart. This currency pair failed to make a new high above 1.313. In fact, it formed a double top pattern (see both the Green arrows). While this is not a perfect double top, the bars in mid-Sept failed to close above 1.313 which subsequently formed a collection of High Test Bars.

 

At the moment, I would like Price Action to show me a New Low – I want to see price move below 1.3 level (Orange arrow), which is also a significant price level, before I look for a short setup. However, as price is ranging (purple box), my short-term target is around 1.28 – bottom of range.

Trade with caution, if the set up does not me your trading rules, then stay out of the market. Remember Warren Buffett’s rule of investment

“Rule No.1 is never lose money. Rule No.2 is never forget rule number one.”

Thank you and happy trading.

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