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.
What is Forex Trading?
The foreign exchange (also known as FX or forex) market is a global marketplace for exchanging national currencies against one another.
Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the largest and most liquid asset markets in the world.
Currencies trade against each other as exchange rate pairs. For example, EUR/USD.
Forex markets exist as spot (cash) markets as well as derivatives markets offering forwards, futures, options, and currency swaps.
Market participants use forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among several other reasons.
Allow me to explain why I’m trading this particular asset.
Based on the early price action, the direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to the main 50% level at 1.1691.
The Euro is trading higher against the U.S. Dollar on Tuesday as a jump in higher-risk assets drove down demand for the safe-haven U.S. Dollar.
Euro Zone bond yields also rose on Tuesday with markets increasingly confident challenger Joe Biden would win the U.S. presidential election, although trading was quiet as investors refrained from taking on new large positions before the outcome.
At 13:15 GMT, the EUR/USD is at 1.1702, up 0.0063 or +0.54%.
The rise in yields also followed Monday’s drop as investors rushed for safer assets in the wake of new lockdown restrictions imposed by governments across Europe to fight the spread of COVID-19.
Today’s price action in the Forex market is likely short-covering. I don’t think the bigger players are taking outright long positions ahead of the election. Instead, they are jumping into the derivatives market to buy protection against unexpected near-term moves in the currency.
Bullish Scenario
A sustained move over 1.1691 will indicate the presence of buyers. This could create the upside momentum needed to challenge the 50% level at 1.1751. This is a potential trigger point for an acceleration into the short-term 50% level at 1.1811.
Bearish Scenario
A sustained move under 1.1691 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to possibly extend into a support cluster at 1.1622, 1.1616, and 1.1612. The latter is a potential trigger point for an acceleration to the downside.
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 the video:
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