Today was a great day on eurusd, but not so obvious at first. Let’s look at bigger picture. SP500 cut Italy’s rating and eurusd tanked – that was yesterday. Add to this fact that eurusd is in a downtrend so it is hard to take a long position. In a long term yes but when you are daytrading then you can take a risk. Today was a good day for that because on lower time frames we saw an uptrend and some corrections down.
In the morning there was a great setup – move up, correction to 61.8% retracement and 55 simple moving average and then move up to the extension line. Pure and simple.
The next trade opportunity was after some sideway movement. Entry point was the close below 0% line. As you can see, this was a pretty strong (a litte choppy) move way up to the 261.8% extension line:
You could find many similar trades like that later, like the one below: