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Taking Call Options on a Put Kind of Day

Today’s price action has been quite interesting. Ever since the middle of the night price has fallen in a fairly soft decline. Price was hanging out at pivot around 7:00am before slowly bleeding to the Southside, through support level one, support level two, and going through the whole number of 1.3000.

Although price was dropping off, it had dropped significantly enough not to consider call options along the way. If you were stuck in a couple of call options that went against, you most likely decided to switch to put options. Trading around the whole number has been pretty good, but only if you were looking at the put option side. Price has started to consolidate several hours after our trade around 20 pips below the whole number. Here is a recent whole number trade. Fortunately for us, we were able to get in a pretty solid call option and finished our trading day on a positive note.

Our trade was taken around 10 o’clock this morning. We watched how price was dropping through support level two into the whole number. It then continued to move further south forming a solid wick for us to take our call option. Price then moved up to the North Side in our direction, setting up a solid trade. However with only a couple of minutes left in the trade, price then decided to fall off. It came down to our entry point, but we were able to finish with a half pip winner. This was not the ideal trade of the day and after this trade was over, we were only looking for put options. You can read more about the broker 24option. This is where we took our trade today.

The image below shows the trading action that occurred on the 5 minute chart on the EURUSD. Early this morning, price had moved up to the pivot line which just so happen to be the purple line of 1.3042. A recent trade taken at this level can be seen here. We’ve mentioned in the past couple of trades, this line has been in play and continues to be in the mix. We will continue trading it as price develops.
Some Interesting Setups
Soon the price moved down to support level one forming a nice wick. You can see on the chart how price moved up for two candles in a row and then continued to move up a few more candles. Price then dropped off through support level two and the whole number, all the way down, creating another wick a few pips below the whole number. Price moved back into the 1.300 number before pulling back down once again. Price then shot up to support level two and repeated the same pattern as the previous trades. At this point, price continues to fall off and we’ll most likely wait for tomorrow for our next trade setup.

Thursday should be a pretty interesting trading day. This is because nonfarm payroll reports will show up on Friday. The news will make the markets move and most likely won’t be digested until after the event. Stay safe with your trading and make sure you take the best trading setups possible.
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