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Grinding a Put Option on the EURUSD

We got off to a fast start this morning trading the EURUSD. We were watching the markets just before the US market opened up. We knew price action would be in a fairly tight range before this time. Price had come down to support level three area before consolidating throughout the morning. Price started to climb back up to support level two and we decided to take our put option on the EURUSD. Lucky for us this trade closed out just before a significant move to the North side.

Price action was fairly soft throughout the morning and it wasn’t until after 9 AM where price started to react. We saw a significant move down last night from the highs of the day yesterday. As price was moving down to this area it did stall out at support level three. When price started to climb to support level two we decided take our trade at traderush. We got in with a nice fill and price did move in our favor for the most of the trade. We did get in with 10 minutes to go and by the end we were in favor with two pips. Price started to climb back up after the trade was closed and broke out to the North side back to the highs of the day.

In the image below you can see how the price action had fallen off from the pivot level all the way down to support level three. This happened in quite a fast fashion and then consolidated for the next four or five hours. Support level level became a solid area of support overall and might be a good area to trade in the future. Price eventually climbed up to support level two. You can see on our green arrow where we entered our trade. The next candle was red pointing to the south side. The next two candles after our trade was closed out made a move to the high side above support level two. Once this price action passed through this area, it didn’t look back until it reached the highs of the day from yesterday. We do have some nice solid wicks at the 1.3390 level right now and this could be an area where price will consolidate again. If price does challenge the whole number of 1.3400 it could set up for a nice put option. This price area could also move to new highs for the month. Be careful with your trading if you do decide to trade this level and know your timing when you get in.
Markets Jumped after the close
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