Identify, plan and trade:
It's important when looking for a trade to follow a strict plan.
IDENTIFY: We have identified EURUSD as a market we can see further downside in. This is largely due to the current problems in Italy. Combining that with seasonal patterns where the USD sees it's strongest run through to December this market could continue to fall.
PLAN: The 4hr down trend is intact here with clear lower highs and lower lows. The previous structure lows sit at a key resistance level adding weight to the idea that the market could test this level before continuing lower.
TRADE: We have taken a trade at the resistance level in anticipation of the market re-testing the resistance area and continuing the 4hr trend. Targets at the 127.2 extensions of the move.
It's important when looking for a trade to follow a strict plan.
IDENTIFY: We have identified EURUSD as a market we can see further downside in. This is largely due to the current problems in Italy. Combining that with seasonal patterns where the USD sees it's strongest run through to December this market could continue to fall.
PLAN: The 4hr down trend is intact here with clear lower highs and lower lows. The previous structure lows sit at a key resistance level adding weight to the idea that the market could test this level before continuing lower.
TRADE: We have taken a trade at the resistance level in anticipation of the market re-testing the resistance area and continuing the 4hr trend. Targets at the 127.2 extensions of the move.