I’m going to short the EURUSD

Euro Flag

Hope you all had a great and easy weekend! Because it’s going to be a busy week!

Tons of important fundamentals, among the most important are:

Monday:

AUD interest rate announcement

Thursday:

GBP interest rate annoucement
EUR interest rate announcement

Friday:

USD Non-farm payrolls report
CAD Unemployment rate

Kind of busy isn’t it?

So what do you think? Do you trade on busy fundamentals weeks like this one?

I do, provided that there is a clear market condition. Look, most of the time the market moves in the direction of the market condition, so I do trade when I see clear market swings, which is what we got in the EURUSD.

Short signal in the EURUSD

As most of you already know, I like to do a long term analysis to determine what the market is likely to do, once I find a currency pair with a clear market condition, then I look for my entries on the short term charts.

So here is the EURUSD weekly chart:

CHART IEURUSD Weekly chart

As you can see in the chart, it’s clear that the Euro is likely to continue its way down.

Now, dont get me wrong, it’s not that I’m going to trade off the weekly chart, I’m just using it to determine whether I’m going to trade the EURUSD or not. In this case, I like what I see, therefore I’m going to look for short opportunities in the short term chart…

Now, here is the short term chart:

EURUSD hourly Chart

So my plan is to wait for the market to break the short term support level and trade the breakout.

My short stop entry order is resting at 1.2985.

Your Turn

What do you think about my entry order?

Are you going to trade this week?

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 .

  • Kamal

    Hello Raul

    Your signal on EU works wonders. Now my charts are clean but performing great results. Your manifesto and tips have changed my trading lifestyles from lost to profit. Thanks.

    Best Regards
    Kamal

  • Said

    Hi Raul,

    Much thanks for Your valuable Insight. I think your Plan might need actualisation. very good plan though but i think that the EURUSD is pulling back strongly to uptrend. I would suggest You to exit the trade with break even.

    I think the EURUSD is still in a Sideway Trend betwwen 1.294 and 1.314-1.33. if you can check that. do it please. greetings

    Said

    • Raul Lopez

      Thank you Said, I appreciate your insights…

      I still think it has plenty of bearish potential though… But as you already know, the market has the last word… we’ll see what happens!

      Good luck!

      • Said

        right word. thanks.

  • Ganang Al-Afghani

    Hi Raul,
    I think your stop order is triggered. Where is the next support for EURUSD, Raul?

    • Raul Lopez

      What do you mean?

      That was my entry level not my stop loss level… It just got triggered, so I’m short…

      Cheers,

      • Ganang Al-Afghani

        Oh I am sorry. I mean short order, not stop order. Where is your target Raul?

        • Raul Lopez

          Hey no worries… My TP is just above the next LT resistance level which is at 1.2843…

          Cheers,

    • Said

      Hi Paul again :-)

      I think the EURUSD is still in a Sideway Trend betwwen 1.294 and 1.314-1.33. if you can check that. do it please. greetings

  • richard

    Hi Raul. The 1.3000 mark has been current support and prior support and if broken I pick it will trend down to 1.2850 or so another support level. However if the trend reverses and breaks 1.3085 then it is a long trade – possible if the USD non farm payroll figure is bad and then the USD could weaken. Its a funny week with I Day in there. Thanks for a good analysis of price action. There seems to be a lot of SF boxes in other pairs at present. I am watching the USD index to try and get a heads up. What about gold? I pick further downside for it

    • Raul Lopez

      I wouldnt consider a long trade in the EURUSD, even if it breaks the 1.3085 level because we are in a bearish market condition… so only shorts!

      My entry order just got triggered. We’ll see what happens.

      I also see further downside in gold.

  • Raj

    superbly simple…………….thank Raul

    • Raul Lopez

      Thanks Raj!

  • G Balasundaram

    Hi Raul, I had seen many training price action, really yours is down to earth, great. As you think, I also strongly believe in simple strategies. Great work, If i have a chance or luck, i will attend your training.

    • Raul Lopez

      Simple RULES!

  • Kamal

    Hello Raul

    Eleven years experiance is great and remarkable. I like your way of doing things . . . SIMPLE is better and workable. True as you said, simple is better than complication. You are very kind to post vital tips about forex. Very nice, keep it up.

    • Raul Lopez

      Hey Kamal, I’m glad they are helpful!

      Cheers,