Hello Forex Traders,
Our focus today will be on the Double Trend Trap setups – or DTT for short. The DTT is the strategy employed in our Forex trading room. We will our live, 2 hour session later today during the New York open at 8am EST, but we will also release a recap video as always +/- an hour after the live room.
One of today’s opportunities is on the EURUSD. Let us take a look.
A quick glance back:
1) The downside trend (from 1.3890 to 1.3550) was not able to break daily support (magenta) and price bounced back up.
2) The recent upside momentum occurred on Friday and was caused by the weaker NFP figures for the US.
3) Despite the news event, price still adhered to the technicals and stalled at the 38.2% Fibonacci retracement level of the entire downside (green Fib) – thereby making higher highs and higher lows in the most recent price action.
From the DTT perspective, a break to the upside above the light green trend line is a with the trend strike opportunity. A break to the downside below the orange trend line is a counter trend line break.
Upside targets are aligned at the 50% and -27.2% Fibonacci confluence at 1.3720, and at the 61.8% and -61.8% confluences at 1.3760.
Downside targets are aligned at the 61.8% and the broken trend line (light purple) at 1.3616 and the bottom (100%) and the daily support (magenta) at 1.3570.
The Swissy broke the bigger down trend line (dotted magenta) to the upside, but is making a sturdy downside correction and price is now below that trend line again.
A break above that trend line and the 1 hour resistance trend line (light green) would be needed for a breakout to the upside. Target is the -27.2% Fibonacci target at 0.9216.
A break above the trend line (light green) indicates when there is a next upside breakout. The targets are the -27.2% and -61.8% Fib targets.
The EURGBP upside recovery has translated into a break of the first trend line (red). The next potential opportunity is the break of the 2nd trend line (purple). Target is the higher trend line (magenta) at around 0.84. Check out this article on the Eurozone for more information on the Euro economics.
For the moment the last one: GBPNZD. The GBP has been losing terrain against the Kiwi and this morning yet another shorting opportunity has occurred – either upon the break of the trend line or upon the pullback. The targets for the moment are the -27.2% and the -61.8% Fib targets.
Are there any pairs on your list? Let us know down below in the comment section!
Our trading room is open at 8am EST until 10am EST, so make sure to join us then and there.
Thanks for reading and sharing this article! In the meantime, wish you Good Trading!
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