EURUSD is a pair that is our favorite pair to trade. EURUSD trends well and most of the time you will be able to make low risk entries. EURUSD is heavily influenced by the decisions made by ECB and FED. So when you are trading this pair, you should keep a close eye on what ECB is doing and what the FED is doing. This was a simple trade that started with a bullish divergence pattern that appeared on H1 chart. Take a look at the following EURUSD H1 chart.
Can you see the bullish divergence pattern in the above chart marked with yellow lines? Our entry was 1.09119 and the stop loss was 1.08000. So the risk was only 31 pips. The trade continued for 3 days and we made 400+ pips by closing the trade at 1.03576.
Now if you had shorted EURUSD, you would have surely gotten your stop loss hit. This is what Boris Schlossburg says: Another night of insane volatility in the EUR/USD as the pair squeezed shorts mercilessly soaring through the 1.1300 level to hit a high of 1.1380 before finally finding some pause in mid morning European dealing.
You really don’t need to know why the price is going up. Just focus on the charts. Whatever information that is publicly available in reflected in the charts. If the bond traders are doing something that is public information and that will get reflected into the charts immediately. So just concentrate and focus on the charts. You don’t need to read all the market analysis if you are a real trader. We just focus on the charts and we just follow the signals that are generated by our system. Our system is robust as you can see it signaled the market move ahead of the crowd and we were able to get into the long trade with a small risk of 31 pips.