Daily Outlook for EURUSD

Attached is the 1H chart for EURUSD. This pair has shown amazing resilience amidst the fall in almost all other pairs. Due to this, all the euro pairs have had significant gains yesterday.

Yesterday, 1.38 has served as very good support and this price seems to be serving as good support even now. As predicted, 1.3920 has served as good resistance and we did not see price going up above that for the whole of yesterday. We also saw this pair breaking through another important support at 1.3884 and since that break, we have seen this pair ranging between 1.38 and 1.3885.

On the upside, we have small resistance at 1.3865 and then a strong ones at 1.3885 and then at 1.3920. We can expect more upside only after break of 1.3920.

On the downside, there is huge support around 1.38. A break of this price could see price heading down to 1.3750.

For today, i would expect more ranging between 1.38 and 1.39 until 1.3920 is taken out. After which i expect more upside.

Intraday Signal for EURGBP

Attached is the 4H chart for EURGBP. As can be seen, there is a huge pin bar on this chart. The location is also good as the pin bar is off an area of previous support and also there has been a strong MM level at 0.8423.

Already, this bullish pin bar has yielded about 50 pips but it looks good for more after some minor retracement.

The next chart is the 1H chart which seems to throw a spanner in the works as you can see a very high volume bar taking the price to 0.8477 but the bar finishes in the middle and the high of this bar has not been broken yet. A break of this will lead to more upside on this pair.

Daily Outlook for EURUSD

Attached is the 1H chart for EURUSD. The week has begun a bit confusingly as a lot of people would have expected GU and EU and other pairs to continue their upside movement from last week. But today morning, we find that all the pairs have been dropping down, especially EU.

As can be seen from the chart, EU broke through important support at 1.3916 again and is now trading below it. We can also see that the break was quite good as it was done through a large bar (as usually happens with good breaks of SR) and the volume is also quite high for the Asian session.

It should be interesting for the rest of the day on how this break plays out. We have to see whether this break holds or whether it is going to range with a range of 100 pips as it has been doing for last few days or whether it is the typicaly Monday morning 'cheater' and we are going to shoot right back up.

As usual, 1.3920 would be crucial. A clean break of this should lead to more upside.

On the upside, the resistances are at 1.3920 and then at 1.4. On the downside, the supports are at 1.3885 and then at 1.3855 and then at 1.38. I would expect more ranging today and any approach to 1.3855, we can go long and any approach to 1.4, we can go short.

Trading Psychology - Entry and Exit

One of the major problems faced by people who enter into trading and which they continue to face till they become professional traders is the difficulty that they face in choosing the right moment to enter and exit trades. I am no exception and i have faced the same situation when i started out trading and it took me close to 4-5 yrs to get to the right moment to enter/exit trades.

The trick behind entering any good trade is to cut out the emotion behind the entry. Normally what we do is that we see price rising and immediately, we are tempted into entering a long. The temptation is too strong. Guess what !! Thats exactly what the pros want you to do. Give in to emotions, give in to your temptations. They want you to trade emotionally. And the trick to be a successful trader is to do the opposite of what the pros want you to do. Why ? Cos thats what they do. They never enter on seeing rising prices.

Trading, as such, is very easy. All you need to do is to open a 1H or 4H or daily chart and you can easily see places where prices had reversed earlier and or had been well supported. All that you have to do is wait for price to reach such areas and take the trades accordingly. Its so easy on the face of it. But why do all of us struggle in doing this simple thing ? Its because of our emotions and our lack of discipline. We see a previous resistance being broken and price running up and we immediately jump into the bandwagon without noticing the simple logic that any good break will almost always be followed by a retracement back into the resistance region. We see price running up 50 pips after the break and we enter there and when there is a retrace back into the resistance region, we are down 50 pips, we get too scared and we close to escape more drawdown. Wat happens? Price simply moves up again to where we thought it would.

The key to successful trading is to control your emotions and have discipline. Wait for good entries, they are always there and will always be there. All you need to do is wait. Have patience, have discipline. You will succeed. I promise.

Daily Outlook for EURUSD

Attached is the 1H chart for EURUSD. Here we can see that yesterday, we had a nice run up and down and thats what has been happening in the past 1 week on all pairs. They have been ranging very nicely which is like hell for the swing traders and a dream come true for day traders.

Anyway, coming back to this pair, this broke through crucial resistance at 1.3916 and had a nice run up to close to 1.4 where is a major psychological resistance. After that, it meandered around aimlessly for sometime as it was caught between support at 1.3916 and resistance at 1.4. In the last few hours, we have seen that the support at 1.3916 has been broken and it looks like a convincing break to me.

We might have a visit back to 1.3920 pretty soon and that will be crucial. If the visit back to 1.3920 leads to a break, then we are in for more upside. Else, we will be seeing more downside with 1.3920 acting as resistance.

On the upside, the resistances are at 1.3920 and then a major one at 1.4 and then at 1.41.

On the downside, the supports are at 1.3885 and then at 1.3825.

For today, as said above, the visit to 1.3920 will be crucial but my gut feel is that EU has more downside than upside today.

Fxstreet Analyst

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So, i have joined the Fxstreet analyst team and in a few days time, you can see my reports and articles on Fxstreet as well. I will try to improve and increase the articles that i write and i hope to bring a variety. So do look out for me at Fxstreet as well !!

Daily Outlook for EURUSD

Attached is the 1H chart for EURUSD. The tough ways of trading continues in all the pairs with all of them ranging within specific price ranges making it a nightmare for swing traders and a dream come true for day traders. Like in other pairs, this pair also rose nicely yesterday and went upto the strong resistance at 1.3916.

There has been previous resistance around this area and this proved to be a very tough resistance to break once again. Several attempts were made to break this resistance, as can be seen from the chart, but all of them failed. As you can see from the charts, the subsequent attempts at breaking this resistance was being done at lower and lower volume which means that the buyers were being dried up slowly and once the buyers were all dried up, the price fell.

For today, 1.3916 would be crucial. A clean break of this would lead to higher prices in this pair but unless this price is broken, we should see more downside.

On the upside, the resistance is at 1.3916 and if this does get broken, the next resistance is at 1.4.

On the downside, the support is at 1.38 which is quite a strong support and then at 1.3750.