Ready? Short EURUSD to Long!

We have seen this kind of market movement too many times, and yet we tend to forget the rules and fall as a victim of the market.

Last week, thanks to Mr. Draghi’s proactive (not really) approach to European economy Euro took a big hit falling against the USD big time, but this week it seems that the tight is turning around, or IS IT REALLY?

Since the market opening EURUSD bounced off the 1.10 psychological support zone and is now moving right on the 5 day SMA. Ahead of today’s US CB Consumer Confidence report we can see a little slowdown in the market, this is good and bad!

Good part first

A slowdown after a major breakout signals for another volatile session. Such market movements signal for entry opportunities for traders.

Bad part

Volatility during the second leg of the breakout could often be confusing since such market moves come with fake breakout first (thanks to big market makers).

How to trade breakouts

Trading breakouts could often be complicated as you need to be extra cautious.

Also: Crude Oil TP levels

The way I would recommend traders to take advantage of those breakouts would be to check how the retail market is trading. As an example in Trade360 Crowd Trading platform you can see how the retail traders are operating. If you see that majority of the retail traders are moving on one direction 2 minutes before the news announcement it is a good sign for you to stay out of that direction of the market as 95% of the traders will be making a loss, which is a fact.

EURUSD Trade360

Today’s EURUSD orders

At the moment we have the second leg of EURUSD being confirmed ahead of this week’s US GDP figures. Hence, it would be recommendable to watch the significant support and resistance levels and combine them with Fibonacci.

We have at the moment two types of potential market movements for EURUSD, which signal to short EURUSD to long it:

27 October EURUSD weekly projections 27 October EURUSD weekly projections

Bullish EURUSD order

EURUSD Long (Buy Limit) @ 1.0970, SL@ 1.0909, TP1@ 1.1025, TP2@ 1.1080, TP3@ 1.1190 (maximum risk should be 1/5th of the usual risk size)

Bearish EURUSD order

EURUSD Short (Sell Limit) @ 1.1165, SL@ 1.1230, TP1@ 1.1111, TP2@ 1.1040, TP3@ 1.0990

It is worth mentioning that the above are counter-trend order types, hence would be recommendable to catch the levels manually instead of pending automated orders.

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