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Seeking Puts Near the Highs

Taking trades on the EURUSD has been pretty interesting this morning. We watched a fairly tight range between the pivot line and resistance one. Price has challenged the 1.3100 level several times as well as the pivot. In the course of the night, we saw price hit the 1.3042 level. This area has come into play several times over the past six months. Although we did not take these trades on the binary options market it is always interesting to see how price reacts at this level. Our trade today was based on highs of the day and several trading formations.

Price was coming up from the pivot level earlier this morning. It had formed a nice wick at the 1.3100 before pushing back down. Price then had a significant five-minute candle that pushed to new highs of that hour. We waited for price to challenge the wick that occurred several hours prior and took our put option. This trade was taking at Traderush and you can learn more about them here. Price went against us for several one minute candles before pushing down in our direction by the end of the expiry. We saw a three pip winner on this trade and it continues to drop off from the level we got in at. A lot of traders were buying into the highs on the image below and are now stuck with a long trade that has gone completely against them back down to 1.3100 level.

The chart below shows the trade setups that were available this morning. You can see a nice wick formation at resistance one where a green arrow is slated. This was showing the highs of the day at that particular time. Notice how price eventually fell off before challenging that same price area again. We like to climb wicks and in this case it worked out really well a couple hours later.
Picking Your Spots
The price eventually moved all the way back down to pivot which set up the best trade of the day forming a nice 5 minute wick. Price touched this blue line and moved up significantly to the North Side. Anytime you see a trade set up like this you want to make sure you get in on it. As a spot Forex trader, you could have made over 50 pips. For our trade you can see the third green arrow moving up to the highs of the day challenging the first wick. This made our trade pretty good, and although it went against us by several pips, it did come back in our favor.

Another thing mentioned on twitter last night was the purple line up 1.3042. This line has been in play several times over the past six months and continues to be in play now that we are in these price territories again. You can see an old trade here. Price came down to the purple line around midnight Eastern standard Time and formed a nice solid wick moving back up to the North Side. This was below the pivot level and had been the lows of the day for this trading period. We will continue to look at this line in the future should it show up again.

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