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End the Week on a Good Note

After a pretty long week of boring trades we finally closed out with a winner just before the US holiday. We talked about this all week, that trading is slow and solid setups are hard to find in any market. We even took an Apple stock binary option trade yesterday because the EURUSD wasn’t moving very well. Today, we finally found a trade that worked out pretty well for us on a pullback.

Price had moved up through resistance three this morning, but remember the range of the euro is much smaller than it has been in the recent past. Just because it moved through resistance three doesn’t mean it’s extended at this point. Price action will dictate what will happen, but you need to be aware of the timeframe you are trading.

This particular trade was based on a pullback after it pushed through resistance three. Price pulled back to an area of most recent support/resistance and held its ground and we entered our trade. We took our call option at Price moved in our favor right from beginning and then pulled back against us for a few minutes. Near the end with less than 30 seconds to go price hit a jumper candle that moved in our direction giving us a 3 pip winner. This ended up being a solid trade too end the week and we’ll take it for Friday, August 31, 2012.

The image below shows a trade that occurred as price moved further down towards the resistance three level and then continued to resistance two. Notice how price held firmly at resistance two which was now a good support area. This price jumped up from resistance two nearly 70 pips in a matter of 15 minutes. There is some news today from Ben Bernanke about the US economy so this may have played a toll on this particular move. As I write this price has now moved back down about 60% of this most recent move. Market conditions are very sketchy right now, so we will stop trading and pick it up next week.

Notice How Support Holds at R2

We will look to continue to make solid trades next week and may even consider making stock binary trades. For now, have a great weekend and we will talk to you on Tuesday with our latest trade. If you are new to binary options don’t forget to check out our latest article on getting started.
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