Check out my plan and possible entry level in the EURUSD

Euro Flag

Hey, how is it going?

Look, I’m not going to lie to you… I has been difficult for me to trade the EURUSD in the last couple of months… Mostly because I have not been comfortable with its longer term charts…

I know most of you like to trade the EURUSD because of its spread… but let me tell you something, I’d rather trade a currency pair with a larger spread and a clear market condition than a pair with a smaller spread but with no idea what the market is likely to do…

I hope you agree with me.

This is why I have been trading other pairs and crosses, specially the AUDJPY, EURAUD, GBPAUD, they all make sense on both, long and short term charts…

But right now… the EURUSD might be giving signs if a clearer market condition…

Here is why

EURUSD Long Term Analysis

Take a look at the EURUSD Daily chart:

EURUSD Daily Chart

The first sign of a clear market condition is clear S&R levels. And it is just what we got in the EURUSD.

Just broke through an important resistance level, and as you already know, once the market breaks through an important level, it is likely to continue in the same direction until it hits its next resistance level.

Makes sense to you?

EURUSD Short Term Analysis

Here is the hourly chart:

EURUSD Hourly Chart

Now, the short term charts are also clear enough to make me comfortable about giving a shot to the EURUSD.

My plan to trade the Euro/dollar is to wait for the market to reach the main short term support level around 1.3265, and if I see upward pressure around this level. I’ll go long.

Your Turn

What do you think about my trading plan?

Do you feel comfortable trading the EURUSD right now?

PS. Dont ask me about its weekly chart… it doesnt make sense to me.

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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 .


  • Tunde

    I suppose price is finding it hard to break the 1.33750 level, but already took profit at the position. I can say its a wonderful strategy you have here, though it requires enough practice. Okay, my question, the S/R line you marked on the 1 hr chart, would you call it an SF Line or box too? Thanks

    • Raul Lopez

      Hello Tunde, you are right, it’s having a hard time trying to break the short term resistance level…

      Patience is like gold to us… we need to wait for the right moment to trade the market, to take partial profits, to add to the position, etc, etc, etc.

      That wouldnt be a SF Box. The SF Box is only formed when the market trades around an important LONG TERM resistance level. Once the market breaks the SF Box, you are free to take trades in the direction of the break out!

      HTH

  • Desktop

    Hello,

    I would like to say that it was easy to trade EUR/USD this week.. there is clear uptrend channel and there were perfect places to buy @1.3186 and @.3273 and 1.3317.. SL were placed below 100 MA at 1H chart..

    • Raul Lopez

      Hey Trader,

      I’m glad you took advantage of the EURUSD this week…

      I already took profits on half of my trade based on the short term S&R levels… now I’ll let the long term levels do its work…

      Cheers,