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EURUSD Seeing Nine Month Highs

If you were up early this morning, you were able to witness the EURUSD climb to new highs. We haven’t seen this price level in nine months. Although the price was strong move to the whole number of 1.3300 it did decide it needed a break. Price hit this level and has pulled back ever since. Over the next few hours price dropped almost halfway between whole numbers of 1.33 and 1.32.Last night that price action could get down to 1.3200, but it never actually went that far. Price is at recent lows right now and has a chance to get down there by the end of the day or tomorrow. We will keep an eye on this trading market and only trade the best possible setups.

The trade we took today was on a recent pullback trading with the trend. Yes prices were falling for the last couple of hours, but we wanted to still stick with the trend. Anytime you go against the trend you’re risking another catalyst against you which can come back and hurt you later on. The trade we took was based on a resistance two for a support trade. Price had fallen from the purple line of 1.33 and resistance three level. We were seeking for price to finally consolidate or at least hold for a little while. Price did bounce off our entry which never felt an ounce of pain giving us a nice winner today at 24option.com. Price eventually moved back down to resistance two and made recent lows for the day.

There is a nice 5 minute wick on the lower side below resistance two that’s being held right now at the 1.3252 level. If this price area gets broken it could lead us back down to resistance one or even get down to the whole number of 1.3200. We do have a long way to go, so the likelihood of a move down that far is still in question.

The image below shows the trade that was considered the best trade so far today. Although it was completely against the trend, price action has been so strong that this particular trade set up had lite risk. Price was working against resistance three and attacking the whole number of 1.3300. You can see how the price went hard right above this price level and pull back down all the way to where we are now. This 50 pip move from the highest point allowed Forex traders to take advantage.

EURUSD Wick Trade

Notice how price action failed above the 1.3300 level and has fallen ever since.

We mentioned in the last couple of videos how Wicks really worked out for us and we will continue trading them going forward. These are some of the best ways you can trade because you know these are strong support and resistance areas when price is moving strong in one direction or another.
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Comments

  1. Abduljohnyy says

    hello all

    I am a newbie..

    How can i share your info..as i have open account at traderush and play demo account now on new year Jan first.

    I stumble upon “trader in Pajamas’ by Dan Anderon..what do you think of the system?

    is it applicable?

    Happy new year guys!

    All the best in 2013..

    cheers.

    Abduljohnyy
    Malaysia

    • Honestly, I have no idea what his system is or does. If I were you I would start from the beginning and try to learn how to trade for yourself. Keep an eye out for more videos and web site updates.

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