Strategy to trade the EURUSD the rest of the week

Euro Flag

In the last few weeks I’ve been posting my analysis on the EURUSD, and even when there are other currency pairs (I think) that have a clearer market condition, traders seems to be more interested in the EURUSD.

Do you have any idea why there are plenty of traders that just focus in the EURUSD?

I’d like to know that…

Anyway…

First things first…

Long Term Chart Analysis

Here is the daily chart:

EURUSD Daily Chart

Clearly the market has been rejected from an important resistance level.

But what it’s most important here, is the way the market was rejected from that level.

There are three things that I pay attention to when I analyze market rejections:

  • Is it from an important level?
  • Does it have upward or downward pressure?
  • Is it significant?

In this rejection (see the orange rectangle), we’ve got all three of them.

Short term analysis

Now, here is the hourly chart:

EURUSD Hourly Chart

Now, as long as the EURUSD trades below 1.3020 I think it has plenty of downward potential.

I would take a trade here for sure, in fact, if I see another rejection off the short term resistance level around 1.3020 with downward pressure, I’ll go short…

I’ll let you know in the comment section in this article if I take this trade.

Remember the “bearish” condition is valid as long as it trades below the 1.3020 level. If it breaks that level up, just forget about this pair and focus on others.

Your Turn

What do you think about this analysis?

What about my initial question: Why do you think many traders focus only in the EURUSD?

Let me know in the comment section.

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Raul Lopez

I’ve been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .


  • Gerardo

    Raul. Creo que si es de un nivel importante, analizando que los maximo y minimo en corto fueron mayores que a largo. Tendencia y presion bajista, es correcto?
    Lo que no entiendo bien es la tercera pregunta, ¿es importante?, respecto a que?.

    Creo que se centran en ese par por ser las dos monedas mas fuertes o con mayor movimiento comercial, y ademas creo que son de las que mas comentarios se escuchan en las noticias.
    Gracias por tus analisis me estan sirviendo mucho.

    • Raul Lopez

      Hola Gerardo,

      La significancia se mide respecto a las velas o periodos anteriores. Si te das cuenta, ese patrón es más grande que cualquiera de las velas que le preceden.

      Si puede ser, como son de las monedas más fuertes, muchos operadores sienten confianza en operarlo…

      Otro factor importante creo que también es el spread, que por lo general es mucho más pequeño que todos los otros pares. ¿Qué opinas?

      Saludos y gracias por el comentario!