Strategy to trade the EURUSD the rest of the week
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:
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:
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.
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.