It's August, and trading volumes have dropped off. I tried to trade in August last year, and it was a horrible nightmare.
But, let's press on with a quick EURUSD analysis. I haven't done one of these for a while, since I've started focusing more on other currency pairs, and am finding them a little easier to trade. EURAUD was trending nicely for a while, and GBPUSD was lending itself quite well to breakouts, generally following the EURUSD but moving further and enabling the breakout systems to catch a few pips.
I'm a little surprised that there are some actual patterns on EURUSD. It sort of seemed like a mindless soup. I've been using the high & low 100 period moving averages as a reference on 1 hour and 4 hours charts when I do look at EURUSD, and noting highs and lows near where prices cross these lines.
EURUSD, 4 hour chart
If I were to trade EURUSD, I'd be looking for a break above 1.2390 or below 1.2240.
With a few hastily drawn trend lines in there, we can see a triangle forming:
EURUSD, 4 hour chart
So this can serve as a little better guide, and we'd be looking for a big breakout with a lot of momentum above 1.2350 or below 1.2250, or basically any big move through the trend lines.
