Forex Trade Signals and Setups Oct. 20th

Verified Profitable Trader

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.

Please Remember to leave us a comment and also to click the ‘Like’ and ‘Tweet’ buttons below to share it.

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.

Want More? My private members get all my trade ideas & market commentary 4x per week. Click here to become a member.

Related Article