Scalping Plan For The EUR/USD - Forex News by FX Leaders
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Scalping Plan For The EUR/USD

Posted Wednesday, May 8, 2019 by
Shain Vernier • 1 min read

“Tight” is the best way to describe today’s forex session. Rates across the majors have entered consolidation as traders digest the latest injection of U.S./China trade war uncertainty. In addition, the wide-open U.S. economic calendar has brought little movement to the Greenback. For the time being, the EUR/USD, USD/CHF, and USD/CAD are in holding patterns.

No doubt about it, range-bound currency pairs are a challenge to trade. However, given reasonable profit targets and tight stop losses, rotational markets can be profitable. Let’s take a look at a quick short-side scalping plan for the EUR/USD.

Scalping The EUR/USD

At press time (about 12:30 PM EST), the EUR/USD is threatening to extend today’s tiny 29 pip range to the downside. In the event the bearish pressure subsides, a short scalp from topside resistance may come into play later on in the session.

EUR/USD, Daily Chart
EUR/USD, Daily Chart

Here are two levels to watch for today’s EUR/USD market:

  • Resistance(1): Bollinger MP, 1.1227
  • Support(1): Daily SMA, 1.1191

Bottom Line: With a bit of luck, rates will rotate back above the 1.1200 handle during late-day trade. If so, a short scalp from the Bollinger MP will set up for the coming U.S overnight session.

Until elected, I will have sell orders queued up from 1.1223. With an initial stop loss at 1.1232, this trade produces 8 pips on a slightly sub-1:1 risk vs reward management plan.

If you are actively trading the forex, remember that the coming U.S. overnight session features China’s CPI (YoY, April) and tomorrow’s pre-Wall Street open has Jerome Powell issuing public comments. Both are likely to bring action to the USD ― be sure to have your stops down and leverage in check ahead of each event.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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