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…


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.

EURUSD Analysis, support and resistance

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 .