There's no tidy consolidation pattern with at least 2 points of support and resistance, so I can't place any trades according to my break-out strategy.
My SELL-STOP order which activated on Friday is in profit at the moment, however.
Let's talk technicals.
The chart above is the EURUSD 1 hour chart with two 100 period simple moving averages plotted. The top line is set to the high price, and the bottom, the low price.
While I don't currently do anything with the information offered by this SMA setup, I do find it interesting how many times the price dives through these bars. I tried to code a robot to take advantage of this strategy once, but it failed miserably. Once the price starts moving, it moves rapidly. This line of thinking did lead me to consider break-out strategies, however.
Looking at some other currency pairs, we can see a head and shoulders pattern. Here are 4 hour charts for GBPUSD and AUDUSD:
Can you see the pattern? This generally suggests a move lower, also supported by Friday's Bollinger Band analysis.
I could almost place some pending trades at the top and bottom of the large rectangles. The head and shoulders pattern has not formed on the EURUSD chart, but since the prices from all three of these pairs often move together - and combined with other technical studies - we're assuming the EURUSD will continue to drop further.
