It all comes to the reasons why to take your trades…
It needs to be a sound reason, you need to have a methodology so you can determine what risks to take and which ones to avoid…
You cant take a trade because:
You simply thought the market was going up
You followed some one else’s advice
You got influenced by a market analyst
You saw the oil price moving up, etc
The idea is to get in a trade when the odds are on your favor, when the likelihood of the market of moving in one direction over the other is greater, when you’ve got a either, a very good profit potential or a good accuracy factor…
You see what I’m getting at?
So here is the reason why I decided to trade the EURUSD…
As we mentioned in an earlier post, the GBPUSDwas getting ready to break either side of the range, and finally today the market broke the short term support level located at 1.6905. Please take a look at the next chart.
This breakout puts shorts in play. Remember however that tomorrow we have the most important announcement of them all, the non-farm payrolls report. It could be a mover because many investors and traders are expecting a recovery.
My Trading plan:
Will look for short trading opportunities. Next long term support level is around 1.6552.