Day Trading the EURUSD GDP Breakout

Talking Points

• 
  The
  

  
  EURUSD
  

  
  attempts to breakout over 1.1052
  

• 
  Breakouts are invalidated below 1.1016
  
• 
  A break below 1.0908 would signal a broader bearish reversal
  

EURUSD 30Minute


Chart

(Created using FXCM’s Marketscope 2.0 charts)

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The EURUSD is again attempting to breakout to new highs after this morning’s

GDP

release. GDP came in at 0.2% relative to a forecasted 1.0%.

Prices

immediately tested the R4 Camarilla pivot at 1.1052, but failed to close above this value on a 30minute chart. Even after a retracement and the creation of a long wick, price is again attempting to move back through the R4 pivot. In the event of a price breakout, traders can then use today’s 108 pip trading range to extrapolate potential price targets.

If price moves back inside of today’s trading range, starting with the R3 pivot point at 1.1016, it would signal the possibility of a false breakout from today’s GDP event. This alternative would open the possibility of the EURUSD dropping back towards values of support including the S3 Camarilla pivot found at 1.0944. A continued decline below the S4 pivot at 1.0908 would suggest a broader reversal for the pair leading to the creation of a new lower low.

Using Camarilla pivots is just one way to approach day trading. To help you get started in your trading pursuit, hosts a variety of day trading webinars. To learn more and register for future events, see the webinar calendar listed

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—Written by Walker England, Trading Instructor

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