Forex Trade Signals and Setups Oct. 20th

EURUSD – Ponging Between Two Fibs and a 20ema
After an impressive 9 day run, whereby it gained 6 of the 9 days, the EURUSD climbed roughly 800pips to stop at the 1.3900 handle.  Concerns over the region not being able to come up with a package to solve the Greek tragedy as the Troika released statements they are unlikely going to meet any budget targets doused some cold water on the Euro bulls.

With that being said, we are not exactly excited about taking swing or medium term longs on the Euro, we believe there are some interesting short term price action trade setups on the pair.

Looking at the Ichimoku chart below, notice how the pair has been stuck range bound for the last 3 days ponging off the 38.2 and 50% fibs along with the 20ema coming in as support below.  Short term traders can take advantage of this range playing both sides (although we prefer the selling more than buying) but tight stops are workable and offer good short term trade setups with about 200pips in the short term range.

Chart About the Ichimoku Cloud

What should be noted from an Ichimoku perspective is the Kumo ahead.  It is quite thick and getting thicker telling the Euro if it doesn’t make an upside break soon, it will become harder as time goes on.  Right now, the Tenkan-Sen is communicating strong momentum but this will wane if it doesn’t push higher soon and clear 1.3920.  If the Kumo does hold any further advances and the Euro stalls, then watch for a Tenkan-Kijun Cross to the downside which will likely be below the Kumo and suggest a move back to the 1.33-1.32 region.

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For those of you looking to trade Advanced price action, or our Ichimoku Systems, make sure to check out our Advanced Price Action or Advanced Ichimoku Courses where we teach rule-based systems for trading Price Action and Ichimoku Cloud Trading.

Also make sure to check out this really great article on The Pyramid of Trading.

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Hi, I'm Chris Capre, Founder of 2ndSkiesForex. I've turned $3,000 into $83,000 in my first 6 months of trading. I'm a verified profitable trader and trading mentor. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action and the Ichimoku cloud. As a trading mentor, I have one goal: to change the way you think, trade and perform using 18yrs of trading experience and cutting edge neuroscience to wire your brain for successful trading. Want to improve your trading edge and mindset? Check out my trading courses here.

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