1. EURUSD – 4hr chart, ‘Wash, Rinse, Repeat’
When an asset is trending in a well-established trend, either up/down then there is only one trading strategy to follow, ‘wash, rinse and repeat’. What we mean by this is that once a trader has identified the trend, then the trader should enter in the direction of that trend when the asset has ‘mean reverted’ and scale-out/exit the position when the price has travelled ‘too far’ from its mean and then re-enter at the mean in the direction of the trend. The EURUSD 4hr chart below a perfect example. BIG week ahead for the EURUSD!
2. Bunds and USDCHF price action encouraging for a EURO breakout