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Monster Moves on the EURUSD

Taking advantage of smooth price action is critical if you want to be successful. Yesterday and today were filled with great entries. Keep an eye out for continuation candles and much more. We talk about yesterdays price action below, but that was amazing. There was nothing getting in the way of the EURO. Today was shaping up okay, but it wasn’t until around 8:45 where price decided to move with some continued momentum. Trading Binary Options became easier as price moved.

The trade we took today was coming off a pullback after big move to the North side. We noticed how price pushed through resistance one, the purple line of 1.3300 and resistance two. We weren’t thinking put option at all. Price then turned and formed a red candle on the five minute chart. We then looked for a pullback trade which occurred 10 minutes later. We took this trade at and got a pretty decent fill. Price moved up by two pips in our favor within the first couple of minutes. Price did flux for the next 2-3 minutes before finishing a half pip in our favor. However, price was very strong and holding this level the whole time. It wasn’t a matter of how much the trade would win by because we knew the trade would hold the resistance line.

When thinking about taking put options against a trend like this you need to be very careful. Candlestick charts will share the story with you and make sure you follow the story before entering a trade. Momentum was really strong to the North Side and most likely if you’re taking a put option today you got into a lot of trouble. Try to stick with the trend on days like this going forward.

The image below shows the trade of the day as price moved through resistance two. You can see how price pulled back over the next three candles. Price then broke that third candle leaned to the North Side given us our half pip winner. Moments after that trade was over the price pushed another 20 pips the North Side. This whole line of the resistance two is a good stopping ground for most of the morning. Price has since moved through it but has come back to touch it on the high side. It is Friday, so it will most likely consolidate around this range and we’ll look for continuation moves on Monday.

Huge Move on the EURUSD

We took a call option during the pullback to Resistance two

We posted this daily candle chart because of the size of yesterday’s move. Notice how it blew through all the price action for the last few weeks and never looked back. Price was so strong yesterday that the range was over 200 pips. This led to a 90 PIP differential between pivot and resistance one. This is sometimes the size of the whole range from pivot to resistance three. Should we see moves like this next week is yet to be determined but we will keep a close eye on it of course. It has potential for 1.3400 next week as well as a 1.35000. Until we see price action break to these newer highs we will continue take call options on pullbacks. If you have any questions or comments please leave them below.

Big Daily Candle on the EURUSD

Notice how this candle pushed through the past three weeks of trading

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