See the profit potential of this trade (and trading smart)

difficult markets

As I said yesterday traders… we always need to trade smart… specially this week with the FOMC rate statement tomorrow…

What do I mean by trading smart?


  • Trade the currency pairs or instruments that have the greatest profit potential
  • Trade only when you have a clear market condition
  • Trade only when you have clear support and resistance levels
  • See other things that you could get advantage of (like rollover)

Follow this guidelines and you’ll be on your way to consistent profits…

Now… remember you need to have at least 80 pips on your favor to hold your trades before tomorrows announcement, otherwise just close them alright?

So here is my plan to trade the currency pair with the most profit potential right now…

EURAUD Analysis

First of all, take a look at the weekly chart, and tell me what do you see…


It was clearly rejected from an important resistance level, which puts the EURAUD in a bearish condition…

This means that the EURAUD is likely to continue its way down until it hits the next LT support level which is at 1.3765…

Right now, it is trading at 1.5289

So we’ve got more than 1,400 pips before we hit that level…

Now, lets take a look at the short term charts and see where we can take our trade…

EURAUD signal

We have two possibilities to take our trade in the EURAUD… but first let me show you the short term chart:


There are two possible trades, a retracement signal around the top of the range, and a breakout signal once the EURAUD breaks through the bottom of the range.

Both targets are open.

Your Turn

What do you think about my trading plan?

What other pairs are you trading?

Leave a comment below.

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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 .

  • Ali Easa

    Raul you are doing a great help for us, we are novice traders and we are benefiting your emails.
    Thank you a lot for the help.

    • Raul Lopez

      No problem! I’m glad my articles have been helpful!

  • Manvinder singh

    Raul Thanks for the trade. Is there a way I can know AUD/JPY daily will further go down till 84.0 level or go up from the current level .

    • Raul Lopez

      Hey Manvinder… I’ve been trying to reach you to no avail!!!

      As long as the AUDJPY keeps trading below 86.00 I think its bearish… wouldnt open a trade just yet… but I will if it consolidates below that level…

      Send me an email when you get a chance!

      Good luck!

  • Chad Hogan

    Im well m8, apart from finding adequate to trade the markets, life gets busy!!
    Yeah mate I realise that. But Im often getting stopped out on set ups like these because price usually at least takes a rest at these levels or retests them. And our stops are vulnerable there. There a ton of pips on offer. Im going to wait until it clears that level and take a pullback trade.

    • Raul Lopez

      Yep… you were right about it mate!!!! But sometimes we need to take this kind of trades, otherwise we miss trade opportunities…

      Looks like it will consolidate around the leves its currently trading… if we get a clear range, I’ll try it again… the risk reward in this pairs is well worth it…

      What other currencies are you monitoring Chad?

  • Chad Hogan

    Hi Raul,
    Ive also noticed Euraud. The only thing that worries me is previous high on weekly chart. I know the market has broken it once since but often these levels become important once again. I think it will reach your TP eventually but it could be a very long wait.

    • Raul Lopez

      Yep, I know what you are talking about Chad… but since its been rejected only once from there we cant take it in consideration…

      How is everything mate?

  • I am not a very big follower of trading short term support and resistance But If they are synchronized and worth taking into consideration before making strong decisions and have clear logic the Why Not ? And that is why I always respect experience people taking about the logic and complete potential with as lesser as a trader can take.


    • Raul Lopez

      That’s correct Krishan… You can see that I also trade based on the market condition of the long term charts… I just try to find my entries on the short term charts…

  • Thanks for the advice. In my last reply You ask me what is clear market condition so I am replying here, that Price is bouncing off the lows in Eur/usd and We have see it happens three times in the earlier swing and still I consider that Selling at top would be better idea but still If we found momentum then selling at bottom would be better idea.

    As far as Eur/aud chart is concerned I think strong risk is on which could drive Riskier currencies across the board and I think thats the only way Aussie can rally across the board. Otherwise I would be looking for Buying opportunities.

    Thanks for the chart and help I appreciate

    • Raul Lopez

      No worries Krishan…

      Thanks for your input!