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Breakout Trading on Yearly Highs

We waited an hour for the NFP news to digest. It allowed us to find a setup that worked out pretty well at the last second. The image below will show you what happened after our trade was over. Either way we had the right idea and it continues to move in our original direction. Forex traders are living pretty good right now based on this news event. Had they used Straddle Trader for their Forex system they would of had a nice news trade on their hands. Taking advantage of big moves like this is really nice when you have the opportunity. For us, we were looking for the trade after the news consolidated. Once we saw a pullback already happened we were then thinking breakout. This is when we decided to get our trade going near the highs of the day.

We watched price climb up to the five-minute wick that occurred at news time. Price was slowly trying to climb and we entered our trade at Traderush. Price immediately moved in our direction before pulling back. It then consolidated around our entry point and by the last minute it pushed up just above our entry. Within about 20 minutes price action finally made its move to the North side. We added a purple line at 1.3742 which turned out to be the area we took our call option. We’ve seen 1.3042 and 1.3142 hold pretty well as a support and resistance area. This doesn’t mean it’s going to work at this particular time, but it’s definitely an area where we might consider a trade in the future.

In the image below you can see the news candle jumping up from the pivot level. The nonfarm Payroll news event occurred this morning at 8:30 allowing the price action to jump 70 pips to the north side. Price eventually pulled back down which set up a nice trade for a call option if you were ready. Again, we like to let the news digest before we take a trade. You can see our green arrow showing our breakout trade. Eventually it did move up to the highs of the day. Price is now climbing up closer to the 1.3800 level and could possibly get there today. The euro is much stronger than the dollar and this could continue for quite some time. We could see 1.4000 by the end of the year or even higher. We are finally in some new breakout territory which will allow some decent trading going forward. Continue to trade your setups using your support and resistance lines and only take setups you feel comfortable with. Do not force trades that aren’t there.
Taking breakouts at highs
We will continue trading the EURUSD as we move into a pretty heavy time frame on the US currency. There is a lot of price action waiting for us and we will be ready to take it on. Keep an eye on your levels and manage your risk. Be ready to take the best setups. If you have any questions about binary options trading or anything else, please leave a comment below and we’ll get back to you as soon as possible. We would also like you to know, we’ll be adding more information about Redwood options and other brokers that are available to you. You may also want to check out Forex trading if that’s something you’re interested in.

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