Look traders, there are times for everything in life…
Today (or for the next few days) its not the time to trade the EURUSD.
How do I know this?
I always try to find the currency pairs that have the cleared swings and the clearest levels, and I focus on them…
When you have clear S&R level and clear swings you know exactly what the market is likely to do, and that helps you find good trade opportunities.
The EURUSD is the most traded currency pair…
A lot of traders are attracted to this pair because of its spread, which is probably the currency pair with the tightest spread around…
The spread that some brokers use in the EURUSD its even less than a pip…
Let met tell you a little secret… I did the same thing when I started to trade…
But now with all these years of experience I know that it was a mistake, why would I trade the same currency pair, everyday regardless of its market condition…
I used to force my self to trade it because of its spread even when I had no idea of what the market was likely to do and oh boy, what a mistake it was…
Now I have a different approach, I trade the currency pairs that has the clearest market conditions… the ones that I feel comfortable with, the ones that have clear S&R levels and clear swings… Those are the ones that I focus each and every day…
And believe me, the results are self evident!
You know trader, it might! (pretty soon).
It’s been difficult to trade the EURUSD mostly because on its long term charts we dont have clear S&R levels, clear swings, etc.
If we dont have clear S&R levels and swings, we dont know when the market is going to stop, retrace back or change direction.
So yes, it has been difficult to see those levels on the daily charts, but things change when you look at the weekly chart… Let me show you what I’m talking about:
As you can see, in this chart the EURUSD is trading in a pretty large range, from 1.4877 to 1.2128, around 2,500 pip range…
If you take a look at the EURUSD daily or 4H chart it will look as if it was already rejected from the LT support level, but it hasn’t… yet:
I think it would be safer to start looking for long opportunities when the EURUSD breaks the 1.3927 for the upside (it’s pretty close though), only then I will be looking for long opportunities.
Trade Safe!
Raul Lopez
What do you think about EURUSD movements in the last two days? Interesting aren’t they (and better if you were short). I was thinking about how the EURUSD weekly chart would look like, and here are my conclusions:
– It started to range at the long term support level, first it broke the shorter term range for the upside, triggering a bullish market condition, but then it came back to the range.
– Then it (strongly) broke through the important LT support level and it will probably continue in this way until it hits the next LT support level.
Now, remember we are talking about the weekly charts, and it could take the EURUSD a few weeks to get there. What we are sure though is that it is in a very clear bearish market condition in the 1W charts.
Trade Safe!
Raul Lopez
The EURUSD its been trading in a medium term range in between 1.4508 and 1.4316. Apparently it is being rejected from the support level at 1.4316:
We need further confirmation though to start looking for opportunities, because right now it is trading near the short term resistance level.
My Plan:
If the EURUSD breaks 1.4387 for the upside I will be looking for long trade opportunities
If the Euro breaks 1.4335 for the downside I’ll be looking for short trade opportunities.
Trade Safe
Raul Lopez
Hope you all had a great and relaxed weekend because I think we could see pretty interesting moves this week.
The EURUSD is trading near a long term support level, 1.4517 and it has created a short term range in between 1.4540 and 1.4488:
We need a further confirmation in order to start looking for a trade opportunity.
My Trading Plan:
If the EURUSD breaks 1.4540 for the upside, I will be looking for long trade opportunities.
If the EURUSD breaks 1.4488 for the downside I’ll be looking for short trade opportunities.
I will do nothing it the Euro keeps trading in between the short term range.
Trade Safe!
Raul Lopez
Even though there has been a small retracement in the EURUSD in this session, we are still in a bearish market condition:
Last Friday the Euro broke an important resistance level, so it is likely to continue its way down until it reaches the next long term support level around 1.4517.
Here is my trading plan:
As long as the EURUSD trades below 1.4683 I will be looking for short trade opportunities. My next LT support level is at 1.4517
All long opportunities will be ignored.
Trade Safe!
Raul Lopez
Finally the EURUSD broke the top of the 4H range it traded for about 2 weeks:
It is in a clear bullish market condition, meaning only long opportunities are in play.
Here is my trading plan:
As long as the EURUSD keeps trading above 1.5038 I will be looking for long trade opportunities. The next long term resistance level is around 1.5340
All short opportunities will be ignored.
Trade Safe!
Raul Lopez
free trading sessions (which you can subscribe from here).
Today the market is clearer than yesterday, we have plenty of trading opportunities in the EURUSD, USDCHF, USDCAD, GBPCHF and more. Please see the video for details.
In this video: Daily analysis on major forex currency pairs (and some crosses):
If you cant see this video you need to download this codec
Euro, EURUSD Analysis, GBPCHF analysis, GBPJPY analysis, USDCAD Analysis, USDCHF analysis