In our Daily Trade Watch, we take a look at some high probability trade setups that we look to trade over the course of the day. Particularly, we will be focusing on opportunities based around strength in USD.
Today, we have identified 3 high probability trading opportunities for the day ahead. To begin with, it is important to point out that they are all USD pairs so be careful of the correlations. Perhaps, look to trade the better technical setups when they arise. The first trade to watch for the day is the EURUSD. The higher probability trade setup is a break below yesterdays low of 1.1648. This would constitute continuation to the downside. If you miss the breakout trade, be patient and wait for the pullback trade which is equally a high probability trade set up. Ideally, the price will pull back to the 1.1648 level. However, if it does not then wait for the consolidation and potential turn around back to the downside.
Other Trades to Watch
The next trade to watch is GBPUSD. It is very much in the same situation as the EURUSD so apply the same logic. The higher probability trade is again below yesterdays low of 1.3168. However, a pullback trade would be worth considering if we get the right conditions. The final market to watch for the day is the USDCAD, however, this market is technically very different to the setups in EURUSD and GBPUSD. In this market, we are waiting for the price to break above our weekly high of 1.3223. At the point of writing this report, we are still roughly 30 pips away from these highs so it is one to keep an eye on.
One thing to be aware of is that it is a Friday. As the day goes by, we might start to see some profit-taking. So, if you get into a profitable position try to make sure that you practice the graceful art of profit-taking. Please remember that every profitable trade is a great trade. Make sure to protect your capital at all times.
Strength in USD Increases to Finish Week – Full Analysis
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