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Markets Acting in a Mixed Pattern

Today was one of those days where price action wasn’t doing very much. Anytime you have a mixed pattern with up and down movements you really need to be careful with your trade entries. We started to watch the markets fall off just above the pivot level and right now it is reaching new lows for the day. With the EURUSD getting back into the 1.3000’s, it should be interesting to see what happens over the next couple of weeks. Price could move back down below the 1.3000 level and into the 1.2900’s. For now, we will continue trading what we see and look for the best trade setups possible.

There was a time this morning were price moved back up to the pivot level. We were watching for a put option trade and just missed it. Had we taken this trade, we would have been in the best trade possible. Price fell off nearly 40 pips from this area. Whenever you see a good trade set up it’s best not to be distracted. Staying focused during trading hours is critical. In this case, we were not prepared to take this trade and we probably missed the trade of the week. Price action continues to fade below the pivot level at this time.

The trade we did take was based on price consolidating just below the whole number of 1.3100. We watched price move up and down on five minute candles and eventually it started to form a nice base. We took our call option to the North Side, trying to get the price above the whole number once again. Price did move up in our direction and also fell back down against us during this timeframe. In the end, we closed out with a three pip winner just above our entry. Since the close of this trade, price has fallen off and reached new lows below support level one.

In the image below you can see the green arrow pointing to the location of our call entry. Price action closed out on the next candle just above our entry point. There is also price action showing moves to the South side. Price did get down to the 1.3084, which was an old trading spot. This is a serious area of support based on an old trade we took in the past. We talk about taking old trade levels as a good area for entry. Make sure you have a couple of things working for you in this case, but it does share a good place to make a price point entry.
Not Much Happening

We will continue trading on Friday and hopefully have a nice solid set up. This is been a whole week of scarce trading after the nonfarm payroll last Friday and we should see a pickup next week.
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