T2W Trading Community

The following chart shows that the initial reaction to the TIC surprise report was down and the EURUSD proceeded to decline from 1.1698 to 1.1660 (48 pips). The price action then in 3 minutes temporarily retraced above the 61.8% line. We see that it fell back and tried again to test the 61.8% fib (1.16835). The second attempt and failure to move further up was a good entry area for a short.

The action tried to test the previous low at 1.1600 again several minutes later, bounced off it and then probed the 38.2% line. The failure there was another selling opportunity. We can see that within 1/ 2 hour of the TIC report, those that missed the initial break down had two more good entry potentials for selling. Next time you consider a breakout trade, the strategy of letting it break may give you more opportunities and more reliable set ups.