This pair has been trading in a wide channel (185 pips or so) for the better part of a week and a narrow channel (60 pips or so) since yesterday afternoon. Those of you have been reading for a while are aware that I like to see at least 10-12 hour bars defining a channel and the more you have, the better the break out (generally speaking). In this case, I'd like to enter half a position if the pair breaks out of the narrow channel and add another half if it breaks through the wider channel. I'll treat each trade separately, with their own stop losses, but if it breaks through the wider channel and gets +30 pips (a bit less than I'd usually require), I'll combine them and move both to break even based on the wider channel and use one trailing stop for both. I hope that is clear. The narrow channel is defined as 1.5409 on the high side and 1.5346 on the low side. The wider channel is defined as 1.5450 on the high side and 1.5264 on the low side. I think the EUR/USD is also forming a nice channel, but I'm not quite ready to commit. I'll just watch it for now. I'll keep you posted.
Happy Trading!
Happy Trading!
