Euro was the best currency to trade today
Hi, everyone. Let me do some market trend analysis for today. I cannot look at all the securities that are available and that exhibited nice moves today, but let me show you one currency that moved pretty much today and how you could have traded some of the currency pairs. The currency which I want to single out today is Euro. I hope you saw how badly beaten it was today. I do not see any specific reason for that except the fact that traders (big dogs) might be getting ready for the macroeconomic news that is due to be released from Europe at 11: 45 GMT tomorrow (European Central Bank Rate Decision). This could have also been a technical reversal which one could foresee by watching price action at various technical levels in Euro pairs. Let me discuss the best technical breakout today and it was in eur/jpy.
Nice reversal pattern in eur/jpy pair
Although the pair did not move as much as eur/usd, its technical breakout down was almost ideal for taking a short breakout trade. Firstly, by looking at 1 or 4 hour chart you could see a reversal pattern that from 4th to 6th of July. The pair made lower highs and kept hitting lower support levels by going lower. It finally reached 116.66 level (yesterday) jumped a little from it and during European session today it started collapsing. The above mentioned level was very important for it was visited not long time ago and acted as support. When a pair forms such a reversal pattern while going up as it did during these last two days and then lands on a previous support level for the second time, it could be a good possibility to place a sell stop order below the support and wait for it to be broken.
How you could have trade a down trend in eur/jpy
The decision would have been dead right today. The pair broke the level and did not look back till it reached 115.52 level (114 pips move). It looks like the pair is consolidating now and traders are getting ready for tomorrow event. So, you could have entered a sell stop order below 116.66 support and gone at least an even number of 116.00 and taken your profit there (in one position) and left the second one (if you play with two positions) to ride till another support level, which was at 115.75 (previous resistance, now support).
I think that was the best technical trade today. I hope you benefited from market trend analysis.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.