How to Trade EUR/USD in Tomorrow’s London Session
Background (15 minutes): Strong
Euro/Dollar just broke out from an important accumulation pattern of the last few sessions, that peaked at 1.0418.
- At point 1, we can see that the breakout was on good volume. Together with the buying seen in the pattern’s lows, this shows strength, and we should be looking for a long trade at the moment.
- This was a testing bar, testing for supply at the resistance. If prices keep staying above 1.04182, there is probably not enough supply for a downtrend, and we can expect further rises in prices.
- Look for a low volume down bar, or a demand bar by tomorrow’s London session, for a long position. Make sure to close any trades before 1:30pm GMT, as unemployment claims and the final GDP numbers for US are coming out.
- If prices dip below the critical price 1.0418, re-evaluate depending on what happened during the most recent news.