Welcome trading legends,
In this post, we’ll be trading the EUR/USD asset using the signals provided by the Tools Trades website and the IQ Option broker. Be sure to stick to the end of the video as I’ll be sharing a special promo code with you.
Allow me to explain why I’m trading this particular asset.
Yesterday, EUR/USD exploded above the September high, and in the process, it snapped the multi-month range and put the euro at its best levels since the spring of 2018. At first glance it is a technically sound breakout given the power associated with it.
It will be important that the price stays above 12000 if we are to see the break hold and not turn into a false breakout. A small dip before another upside push may be in order, but as long as it isn’t overtly bearish pressure then we will continue to give the upside the benefit of the doubt.
In the event the breakout holds, the next major level on the charts isn’t until the 2018 high at 12500. This could mean we see a rather sizable end-of-year rally in the works. Looking at the size of the range since September and comparing to the breakout over the summer above the March high, a 500 pip move is doable in a relatively short period of time.
A breakdown below 12000 with pressure will be cause for concern from the long-side and at the least warrant a move towards neutral. We would want to see an immediate bullish response on any dip back inside the range, or else EUR/USD would run the risk of seeing it trade lower back towards the bottom of the range.
One potentially bearish factor some market participants are making note of is the extreme positioning in the futures market. Positioning by large speculators (hedge funds, CTAs, etc.) shows a market that is quite long. The extremes seen a couple of months back where near the same levels seen back at the top in 2018, but the size of the position has come off a bit since. Overall, positioning is a potential sign of a saturated market, but not necessarily indicative of one ready to reverse (as we are seeing). We may continue to see more upside before a heavily long futures market turns into fuel for selling.
As you can see the signals from the Tools Trades website have worked!
The promo code that you see on the screen will give you more trading signals if you use them on the Tools Trades website.
Be sure to watch my other videos on the channel and read the blog page so you learn more. If you want more videos like this be sure to like and subscribe. May the Forex be with you.
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