EURUSD came down today from 1.2350 to 1.2275. The drop is a lot sharper than yesterday's rise, which may indicate that bearish sentiment is stronger than bullish sentiment. It looks like it's still going down, but I'm out of the trade because it's outside the Bollinger bands.
If it can break below 1.2275 level, I am inclined to sell it. Twice before in February, it broke below this level and continued down to 1.2200. There's a chance it could do the same this time.
The 4-hour MACD appears to support a downward move as well.
Hopefully this trade will become valid sometime FOMC news or still be valid after the FOMC news is released, because I won't be awake to trade it.
Risk management: If it continues going down tonight and breaks the line, I will be less inclined to sell. It would have moved more than 70 pips in one day without some kind of major supporting FX or political news that I know of, and I would rather not enter a trade if I don't know why the currency pair is moving.
If it can break below 1.2275 level, I am inclined to sell it. Twice before in February, it broke below this level and continued down to 1.2200. There's a chance it could do the same this time.
The 4-hour MACD appears to support a downward move as well.
Hopefully this trade will become valid sometime FOMC news or still be valid after the FOMC news is released, because I won't be awake to trade it.
Risk management: If it continues going down tonight and breaks the line, I will be less inclined to sell. It would have moved more than 70 pips in one day without some kind of major supporting FX or political news that I know of, and I would rather not enter a trade if I don't know why the currency pair is moving.