EURUSD - over extensions and consolidations

Overnight EURUSD took a dive after breaking out of our consolidation triangle. I plan to take this trade down to at least the 1.1120 range where we might see a bounce or some resistance.

Currently we are over extended on the 1 and 4 hr charts and likely we will get a breakout pullback back to the 1.1190 levels for a retest before continuing down. If we consolidated sideways that would be great too.

Typically I adjust my stop along the way down at the previous 4 hr candle but since there has been no clear pullback for clear reversal levels I am just adjusting my stop to break even. Once we have a solid pullback and signs of continuation I will adjust to that level.

Trade fechado: stop atingido:

After adjusting my stop before bed we were stopped out in the night. Either way I was not wanting to hold during a consolidation, especially if we are pulling back to the 1.1190 levels for a test of resistance. I would rather wait for a full pullback and enter at a break to the downside. I will update at the new entry.

Comentário:

Well that was a fun bit of excitement. I did not take any trades on this but it does confirm my level for a pullback. I think I will keep all EUR USD stocks out of my playbook for next week since we have both the US fed meeting and EUR unemployment numbers. Its going to be hard to gauge what direction we are going and for how long. Best to sit on the sidelines wait for an over extension and jump on that rubber band effect.