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This is How You Profit on a Break Below Major Support

Posted by TopstepTrader on August 27, 2018

Breakouts above major resistance or breakdowns below major support are a trader's dream. They occur rarely, but offer opportunities for trades over multiple days. Such was the case when Euro futures ($6E) broke down in mid-August. 

For multiple months, the Euro put in a strong level of support around 1.16, bouncing between there and lower highs beginning in May. As the chart shows, this put in a technical formation of a descending triangle, which is a bearish technical pattern. That bearish pattern played out here in the Euro when prices ultimately broke below support.

Coach Dan breaks down this trade and exactly how traders can identify these moves and profit. 

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Topics: Performance Coaching, Futures, Trading Setups, Trading Basics, The Trade, Euro

Will the EUR/USD Uptrend Continue? Here are the Factors Driving It Higher

Posted by TopstepFX on February 02, 2018

EUR/USD was in a strong uptrend throughout all of 2017, rising more than 14%. The Euro, in general, was the best performing major currency of 2017. What made the move so impressive was that it was somewhat unexpected. As discussed, the U.S. Dollar came into the year on a strong note. However, fears of political instability subsided, Eurozone growth surged, and the European Central Bank (ECB) was forced to begin withdrawing its stimulus.

Those three factors turned the market around. 

As the chart below shows, the first major breakout in EUR/USD came mid-April on the weekend of the French presidential elections (April 23) when it became clear that Emmanuel Macron would defeat Marine Le Pen. The market feared Le Pen would ride in on a global wave of populism and might pull an upset – potentially leading the French to exit the EU. That did not happen, and the EUR/USD surged. 

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Topics: Forex, US Dollar, Euro, EUR/USD

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