Forex Trade Signals and Setups Jan 30th

EURUSD – Two Bar Trading Range

As we talked about last week for the Euro, the key resistance level was around the 1.3200 area.  Price closed last week right on this key level which was a prior swing low for Nov. last year which you can see in the chart below.

price action 2ndskiesforex forex price action jan 30th

For this week, it started the week off selling on the open suggesting there are willing sellers here as the market pretty much sold off from the open.

However, taking a closer look at the price action for today, we can see today’s candle sold off to yesterday’s low while only breaking it by one pip.  It then rejected to close 60pips off the lows.  This failure to break the lows of the prior candle by more than 1pip means its unlikely to have trapped any traders short on the break.

price action two bar trading range 2ndskies forex

Thus in effect, it has created a two-bar trading range so while price stays in the middle, its unlikely day traders will take heavy sides buying or selling this pair.  They will more than likely wait for the two-bar trading range to be broken before taking any new positions.  However, there are still two intraday plays.

If you are a preferred seller and think the bears have control or will take control, then you have a clear line in the sand to sell either just above 1.3200 with stops above yesterday’s high, or a possible sell around 1.3181 with stops tightly above 1.3224 targeting 1.3084 just above yesterday’s low.  If the price action is corrective and timid, then this may give sellers confidence to add onto their positions or take new ones.  You can watch the 1hr and 4hr for clues on this.

Dynamic support price action trading 2ndskiesforex

If you are a preferred buyer, then you can play off the intraday dynamic support on the 20ema for the 4hr time frame which also produced a pinbar.  Stops would ideally placed tightly below yesterdays low so this gives you plays on both sides.

For those of you looking to trade price action, visit our Advanced Price Action Course where we teach rule-based systems for trading Price Action.

Read our latest article on Building a Successful Trading Mentality.

 

Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.

Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

Related Article

  • Patricia

    Hi Chris,

    On the daily chart, price action was only less than 15pips away from the 32.8fib (1.3245) pullback of the down trend from last November, then it went south before even testing the 38.2fib level, what does this imply to you from pure PA perspective? I am a little puzzled.

    thx,
    Patricia

    • Hello Patricia,

      I really don’t think of it that way. I look at what price did respond to and trade that. If you look at the nature of the two-bar trading range, you’ll get a good idea of how to trade this as both bars communicated a lot on their own.

      Hope this helps

      Kind Regards
      Chris