EURUSD: Range Play

The EURUSD remains stuck in a short-term sideways range, among 1.3730-1.3500 key levels, the latest rally failed at that resistance area, where price was rejected at the confluence of 200 and 50 days Key simple moving averages. A retest to the floor of the sideways range seems likely. Note that taking 1.3730 may signal further recovery and negate this scenario.

Having this idea in mind, I can extract a trading framework, looking to short the EURUSD near 1.3650-1.3675, targeting 1.3600 and 1.3510, with a stop loss above 1.3735, my stop will be on a four hour closing basis. For more confirmation, I might wait for a rejection candle such as a shooting star or a long legged doji before initiating the short.

Wish me luck, and best of luck to you, join me at twitter.com/thefxchannel