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How would you trade this EURUSD high impact news?

EURUSD illustration of the choices forex traders got to make prior to a highly anticipated high impact news event.  Which choice will you pick? Do you have a consistent approach? Which choice delivers better performance over time?


These describe EURUSD

  1. ECB to announce interest rate decision tonight. It is a high impact event.
  2. Market analysts expect ECB to announce tapering also which will be bullish for EURUSD.
  3. EURUSD is bullish since it is up this week and into third day of gains.
  4. EURUSD was resisted since the last two weeks.
  5. There is a Head and Shoulders Pattern in the week chart.
  6. The week/day is not over yet.
EURUSD price action in 3 charts

EURUSD price action in 3 charts



  1. Go long at market to front run ECB announcement tonight in line with bullishness since the last two days.
  2. Wait for bullish ECB announcement tonight to push EURUSD over resistance and then jump breakout immediately.
  3. Place a limit short at or above resistance zone and wait for ECB announcement tonight to trigger.
  4. Short at market now to front run ECB since EURUSD won’t make it above resistance.
  5. Look-see only.
  6. Follow someone else.

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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