Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
Hello and welcome to Tuesday’s DecaPip Daily.In Monday’s trading we saw the EURUSD make a large move to the downside after an initial spike high to 1.1195.
For this edition of DecaPip Daily I would to show you 2 potential ways to trade the EURUSD using a very effective swing trading method.
The first and potentially safest way to trade this would be to wait for a pullback and then enter a Sell EURUSD position at the key Resistance 1 level market on our currency charts.
The second option would be to take a Buy position from the Support 1 level from our charts.This is a potentially more lucrative trade that will could create a higher low on the weekly chart if it works also give us a indication to the appetite for Buying.However it is more risky as we are counter trading the prevailing trend.
A key point to add is that with these type of trades the stop loss can be relatively small and your risk reward substantial if the Key levels found can hold.
Correlations with other currency pairs can help us also when selecting trade set ups for ideas and clues.
We can use the USDCHF for the Buy part of the trade idea mentioned as a mirror for the EURUSD.
We should look for the USDCHF to hold or stay under the Key Resistance 1 area if we are to consider Buying it’s counter part EURUSD.If the Resistance is easily broken we can then make an informed decision as to whether to take our pending trade set up.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
All comments, charts and analysis on this website are purely provided to demonstrate our own personal thoughts and views of the market and should in no way be treated as recommendations or advice. Please do not trade based solely on any information provided within this site, always do your own analysis. For more information please see our full disclaimer in the footer below.