Credit to the original author: Coreg2004 on ForexFactory.com
Title: Market Analysis and Trade Insights: Trading Only EUR/USD
In the dynamic world of Forex trading, narrowing your focus on a specific currency pair can allow for deeper understanding, improved analysis, and better trading performance. One trader who has exemplified this perspective is Forex Factory user Coreg2004, who shares valuable insights and trade analysis in the EUR/USD-only discussion thread. This article will explore some of the essential points raised by Coreg2004 on trading the EUR/USD pair, offering a detailed breakdown of technical expectations, strategy applications, and example trade setups. By studying EUR/USD in detail, traders are better equipped to anticipate movements, manage risk, and refine their daily routine.
Understanding the EUR/USD Pair
EUR/USD remains the most traded currency pair in the world, accounting for a significant portion of daily Forex volume. It represents the exchange rate between the Euro and the US Dollar. This pair is characterized by:
– High liquidity
– Tight spreads
– Strong reaction to economic indicators from the Eurozone and the United States
– Clear technical levels due to the large number of traders watching them
The EUR/USD pair is particularly appealing for technical traders due to its smooth price flows and reliable chart patterns. Coreg2004 demonstrates this approach through consistent application of technical frameworks like Fibonacci retracements, supply and demand zones, and price action signals.
Technical Overview and Recent Analysis
In a recent analysis from page 742 of the “Only EUR/USD” thread on ForexFactory, Coreg2004 offered insight into short-term movements and technical reactions during the European and New York sessions on Monday, March 25, 2024. He pointed out the effectiveness of marking previous highs and lows, observing how price interacts with these levels.
Below is a summary of the key points discussed:
– The 4-hour chart (H4) showed a strong reversal pattern after a downward move during the Tokyo session, which ended around 2:00 am EST.
– A reversal candle formed near technical support during the transition to the London open.
– NYC session began with buyers showing interest, pushing price upwards.
From a technical standpoint, certain zones became significant:
– Support zone near 1.0800
– Resistance zone near 1.0850
Coreg2004 illustrated price reactions around these levels, showing how price first failed to break resistance before reversing. This created ideal opportunities for short-term swing trades or scalps, especially when the reaction aligned with timing patterns unique to the trading session.
Price Reaction and Session Analysis
One of the most valuable parts of Coreg2004’s contributions lies in session-based behavior. Traders often overlook how the time of day impacts price movement, but this can influence volatility, trend strength, and reversals.
He observed:
– The Tokyo session typically shows limited volatility.
– The London session introduces significant momentum, especially around the European open at 3:00 am EST.
– Often, London creates a false move before reversing — a “London fake-out.”
– The NY session reinforces or reverses the London trend, depending on economic data or market sentiment.
For example, during the March 25th trading day, price moved strongly during the first part of the London session, testing resistance. As NYC traders entered the market, price reversed and returned toward the earlier session lows. This is a classic session behavior where pre-market moves are absorbed and countered by fresh liquidity.
Trading Strategy Based on Session Analysis
Session behavior leads to trading strategies that can be repeated across days. One method involves identifying key structures in one session and trading their break or rejection in the following session.
Steps to implement this would include:
1. Mark the high and low of the Asian (Tokyo) session.
2. Look for a breakout, fake-out, or retest of these levels during London.
3. Confirm moves using candlestick formations or momentum indicators such as RSI or MACD.
4. If
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