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

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?

Simple…

  • 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…

EURAUD 1W

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:

EURAUD 1H

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.

EURAUD analysis, EURAUD signal


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 .