FX CHART OF THE DAY: EURUSD SHORT (MEAN REVERTION PROBABILITY)
EUR continues to trade with high price volatility within its macro lateral range, defined in the related idea below.
During a lateral market the best way to trade is to avoid betting on any kind of trends.
Instead, it is more likely that price will continue to revert to its relevant moving averages on intraday basis (such as weekly and daily means, measured by 120 bars and 24 bars on hourly chart respectively).
Short trades are also preferable due to EUR correlation to oil prices, with WTI Oil recently entering a new leg of downtrend (see the second related idea).
During a lateral market the best way to trade is to avoid betting on any kind of trends.
Instead, it is more likely that price will continue to revert to its relevant moving averages on intraday basis (such as weekly and daily means, measured by 120 bars and 24 bars on hourly chart respectively).
Short trades are also preferable due to EUR correlation to oil prices, with WTI Oil recently entering a new leg of downtrend (see the second related idea).
