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EURUSD Breaking Above Resistance

Now hitting Resistance three, the Euro has climbed nearly 100 pips in just a couple of hours. It’s almost like the light switch went on and things took off. We were watching this morning how price consolidated for a good six hours. The price was located just below the pivot level most of this time.

Finding a good trade set up in this range was quite difficult. Just prior to this consolidation price had reached the whole number and above 1.3100. We knew that momentum could build to the North Side. It wasn’t until roughly around nine o’clock this morning, Eastern standard Time, in which price started to make its move. Price climbed over the next two hours up over 100 pips through resistance three. It’s now hitting the range of 1.3183. We will definitely keep an eye out on this price level and the whole number of 1.3200 over the next day or so.

As price was climbing to the North Side we were looking for call options. We noticed how price pushed through resistance one and then moved above the resistance two really quick. As price came back down to this resistance level we entered our call option. Within a couple of minutes price jumped over four pips. By the time the trade closed out it was up over 12 pips. Forex traders taking this trade on the Forex market could be up another 40 pips from our entry. Not bad in 20 minutes. If you’re looking for reversals in the market during this climb, you most likely paid the price. We don’t always stick with the trend, but when you see the strength building in the morning around the US open, you need to be very careful with going against the trend.

The image below shows the chart and how it all set up. You can see how price action consolidated below the pivot level and the purple lines from previous trades. Although there might have been a couple of trade setups in this range, it was probably too difficult to make a good entry. Price climbed through resistance two. Our green arrow points to the location on the pullback that we took our trade on. The next few candles after that continued to climb to the North Side. You can see how price is now at resistance three and beyond. It will be interesting to see how this plays out for the rest the day and the rest of the week, considering it’s only Tuesday.
Euro making some big moves

We do have a nonfarm payroll trade at the end of the week. This is the first Friday of the month of May. When you have a nonfarm payroll trade coming up in the week, you need to be careful of the price action that occurs after Wednesday. You may start to see consolidation or weaker market conditions. Try to stick with the Euro at this point until we see a reversal on the US dollar. Price action will dictate your trades and try not to force anything until after the nonfarm payroll on Friday. Once this information is released to the world it should be interesting to see what happens going forward. We will continue to trade on the binary market and only take the best setups possible.
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