Above, the 1 minute chart; below, the 10 minute chart of the EUR/USD midday. Of interest, the EUR range has been 13 pips for the past 3 hours . . that’s tight, and it all happened on normal daily volume.
Note the volume collapse at 10:15, which, as of this post at 13:30 continues to be almost non-existent. This consolidation is really a fractal model of what happened on the 10 minute bars, where we saw clearly defined support and resistance within a 50 pip range. These are the kinds of extended consolidations that inspire breakout strategies and in upcoming posts we’ll examine several set-em and forget-em straddle setups that may offer some controlled, low risk potential.
Related posts:
