#EURUSD Trade Options

A good opportunity of taking a LONG in the direction of the monthly/weekly main move just presented itself during the ASIA session. A position could/should be established in the direction of the main move of the week/month (uptrend) in an attempt to take out the weekly average range.However, I truly believe this low of the week won't hold because the average monthly range was taken out this week. Therefore, we should see monthly range trading until Friday (last trading day of month) thus having higher probabilities of expanding the weekly range (currently around 62%) south of the weekly low.


In case those stops are triggered, a second option would be to take a position on the break (SHORT) of the low of the week. In this case, a the position will be backed up by the main move of the day and the NEW main move of the week. However, in this case, the position will require a bigger SL (above the days high).


A third option would be to skip the break of the weekly low and wait for a pullback towards the daily high where a more acceptable number of pips @ risk will provide a better R:R trade.


Fiber has just encountered a supportive trend line clearly seen on 4h or 5h time frames. On these time frames, a potential H&S formation could be in the makings. In this case, it could be worth trying to catch the top of the projected right shoulder with a very tight stop loss.


Let see what happens.


Cheers.

The 300 min. chart: a possible H&S formation could be in the makings.

A chance to go LONG presented it self as price closed in towards the low of the week when the monthly trend is up and the weekly trend is also up. However, a SHORT position can be established at the break of the low of the week.