All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
Amazing short move in EUR/USD today. Let's take a quick look on this market with a top down analysis combined with a nice trade opportunity to catch this straight move down.
We beginning like always with the macro monthy bars chart. The market one-time-framing since 6 months lower and last month's low got taken out as well. The market could reach the next support area.
On the weekly bars chart we can identify a bracket area. This week opened at the lower line of this balance area, took out last week's low and trading below the bracket currently. Here is the next potential support area marked as well.
Moving forward to the daily chart we can observe how the previous day's market took out the low from two days ago and closed below the bracket area. Today the market rejected the balance area low and took out yesterday's low as well as the low from three days ago.
Now to the trade opportunity for today. Observing the weekly TWAP we can see how the market trading below last week's value, found resistance at this week's developing value high and moved streight through the DTWAP and DVAL.
With the more bearish HTF informations as well as the knowledge about the potential resistance at the weekly developing value high a trade as soon as the market got back into value with a stop placement above today's high made sense. Logical scale target would be the other side of weekly developing value.
With that said, we hope you've benefit from today's market action in EUR/USD and if not the next opportunity will arrive for sure. In the meantime you can visit our trading commmunity to learn more about our trade methodology and risk management approach. With our premium education content you can acquire knowledge about a tactical and strategic position management with logical stop as well as target placments.
Stay happy!
