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EURUSD trade ideas

Reasons for Bullish EURUSD for 2025This is my first trade for the year. I'm looking for buys and the 4hrs demand zone seems to be a good start. The trade will go well. Enter if you see it on time. I'm also looking at a 2nd entry, below 1.022 but I'm not sure it will come there. Looking at it because of probabilities of trading. Same is applicable for GBP AND AUD TRADE RESPONSIBLY Why do I think the year will be bullish. 1. Seasonality: DXY is usually bearish the year BTC makes a new all time high. It will either continue the cycle or it will create a new outlook; I favour continuing the cycle. 2. Similarity: looking at gold price action from August 2020 to October 2022, you'll find a similarity. They trended for 2 years, a false breakout and a reversal. Same scenario is playing out now. Although I think contrary to XAU, eur will break to the downside but for now, we go up to clear the upper part of the range. 3. Trump's presidency: Trump is always for making things okay for the average American. That means a weaker dollar. He is already clamoring for a lower interest rate. These are good economic conditions and they all will make dollar weaker against other currencies. He is also pro-crypto and that means weaker dollar. 4. Crypto bull run: As I said earlier, DXY is usually bearish for 6 months or more during crypto bullrun, that hasn't happened yet, neither the bullrun nor the DXY weakness. We are still in for the long ride.
Long
by UGBOR
1
What Is the Over-the-Counter (OTC) Market and How Does It Work? What Is the Over-the-Counter (OTC) Market and How Does It Work? The over-the-counter (OTC) market is a crucial yet often misunderstood part of the financial system. Unlike centralised exchanges, OTC markets offer a decentralised way to trade various securities, from bonds to currencies. This article explores how the OTC market works, its instruments, and the opportunities and risks it presents for traders and investors alike. What Is the OTC Market? The over-the-counter market meaning refers to the OTC marketplace, a decentralised network where financial assets are traded directly between buyers and sellers, rather than through a centralised exchange like the NYSE. This OTC definition highlights that trades happen via private negotiations, often facilitated by brokers or dealers. OTC markets cover a wide range of assets, including bonds, derivatives, and unlisted stocks. This market is popular for assets that are either too niche or illiquid to be traded on traditional exchanges. For example, many corporate bonds and complex derivative products are commonly traded OTC. One of the key features of the OTC market is its flexibility. Since it’s not bound by exchange rules, traders can customise contracts, including factors like trade size and terms. However, this also means less transparency, as there’s no central exchange to standardise prices. Investors also face greater counterparty risk—the risk that the other party in a trade may default. Prices can vary, and buyers often face wider bid-ask spreads due to lower liquidity. Despite this, OTC market trading plays a crucial role in global finance, especially for institutions looking for bespoke solutions or access to less commonly traded assets. Although not as accessible to retail traders, it’s vital for institutional investors, corporations, and hedge funds. How Does the Over-the-Counter Market Differ from Exchanges? The over-the-counter market and traditional exchanges both facilitate the trading of securities, but they operate in fundamentally different ways. Check out how they differ: 1. Centralisation - OTC: Decentralised, with trades occurring directly between two parties, typically via brokers or dealers, often through phone or electronic means. - Exchanges: Centralised, with all trades happening in a formal, regulated environment (e.g., the NYSE), ensuring consistent pricing. 2. Regulation - OTC: OTC trading is regulated but with fewer reporting requirements and more flexible trading terms. - Exchanges: Highly regulated, with strict oversight from government bodies (e.g., SEC) to provide transparency and protect investors. 3. Pricing Transparency - OTC: Prices are negotiated and can vary between trades. This lack of a central order book means there’s often less price visibility. - Exchanges: Transparent pricing with public order books and visible trade histories, ensuring all market participants see the same prices. 4. Liquidity - OTC: Liquidity can be lower, and bid-ask spreads can be wider, particularly for less frequently traded instruments. - Exchanges: Typically higher liquidity with narrower spreads due to the larger pool of buyers and sellers. 5. Contract Standardisation - OTC: Contracts can be customised to suit the needs of the parties involved, which is common with derivatives. - Exchanges: Contracts are standardised in terms of size, quality, and other conditions, offering uniformity across trades. 6. Counterparty Risk - OTC: Higher counterparty risk since there's no intermediary guaranteeing trades. - Exchanges: The exchange itself acts as an intermediary, reducing the risk of default. Different OTC Markets The OTC market is decentralised, but it has several key venues or platforms where securities are traded. Each market offers a different level of access and regulation. Key over-the-counter market examples include: OTCQX This is the top-tier OTC market, where companies must meet higher financial and reporting standards. It’s known for featuring well-established companies, including international firms and large corporations that don’t wish to list on major exchanges but still want access to US investors​. OTCQB Often called the "Venture Market," this tier caters to smaller or growing companies. It has less stringent requirements than OTCQX but still requires regular financial reporting and compliance with some SEC guidelines​. Pink Open Market Also known as the "Pink Sheets," this is the most speculative and riskiest OTC market. Companies listed here have minimal financial requirements, making it home to smaller, more volatile firms. Investors should approach this arena with caution due to the higher risk of lack of transparency​. Forex, Bonds, and Commodities Since OTC markets are decentralised, they are not as heavily regulated as exchange-traded markets. However, they are still subject to regulatory oversight in key jurisdictions to ensure transparency, protect participants, and prevent fraud. Types of Instruments Traded on the OTC Market The OTC market is home to a wide variety of financial instruments, many of which don’t fit neatly within the rigid structures of formal exchanges. These instruments are often more customised or involve companies that aren’t listed on major exchanges. Derivatives The OTC market is one of the primary venues for trading derivatives—an instrument based on the price movements of an underlying asset. OTC derivatives examples include CFDs, swaps, forwards, and options. These contracts are often tailored to meet the specific risk management needs of the parties involved. For instance, interest rate swaps help companies hedge against changes in borrowing costs​. The key difference between exchange-traded and OTC derivatives lies in standardisation: exchange-traded derivatives are standardised, while OTC derivatives are customised to suit specific requirements. Unlisted Stocks Shares of smaller companies that don’t meet the listing standards of major exchanges are traded OTC. These stocks can range from well-established foreign companies (through mechanisms like American Depositary Receipts) to speculative, early-stage firms​. Bonds Government and corporate bonds are frequently traded over the counter. Since bonds are typically issued in large quantities and often have specific terms, the OTC market allows for more flexibility and customisation compared to exchanges. This also includes municipal bonds, which are important for financing public projects​. Commodities Some commodities, such as gold or oil, can also be traded OTC, offering buyers and sellers a flexible way to arrange deals that aren’t subject to standardised exchange rules​. Currencies The foreign exchange (forex) market, the largest OTC market globally, involves the trading of currency pairs. While it’s a specialised space, it’s essential for international trade and finance​. Want to explore a world of currency pairs and stock and commodity CFDs? Head over to the TickTrader trading platform by FXOpen to get started. Advantages and Disadvantages of OTC Markets The OTC market offers both significant advantages and notable disadvantages, making it an important but complex space for investors. Advantages - Flexibility: OTC markets allow for greater flexibility in terms of trade size, timing, and contract structure. This is particularly valuable for derivatives and bonds, where customised terms are often crucial for hedging or managing financial risks​. - Access to Niche Markets: Many securities traded OTC, like unlisted stocks or foreign bonds, aren’t available on major exchanges. This provides investors with access to a broader range of opportunities, particularly in niche or emerging markets​. - Less Stringent Requirements: For companies, the OTC market offers a way to raise capital without the heavy regulatory burden of a stock exchange listing. This makes it a viable option for smaller or newer companies looking to grow​. Disadvantages - Lower Transparency: One of the biggest downsides of OTC trading is its lack of transparency. Prices are often not publicly available, making it harder for investors to gauge fair value​. - Higher Counterparty Risk: Since there is no centralised clearinghouse, the risk that one party might default on a trade is higher in OTC venues. This can be particularly risky in volatile conditions​. - Liquidity Issues: Liquidity can be much lower in OTC markets, especially for niche or less frequently traded securities. This means that finding a buyer or seller at the desired price may be more challenging, resulting in wider bid-ask spreads​. The Bottom Line The OTC market offers unique opportunities for traders seeking flexibility and access to specialised securities. However, it comes with its own risks. Understanding these factors is key to navigating this dynamic marketplace. To potentially mitigate risks, traders choose regulated, well-established brokers with a long history. To explore trading opportunities in the forex, stock, and commodity markets, consider opening an FXOpen account and gain access to four advanced trading platforms, blazing-fast execution speeds, and competitive trading costs. FAQ Is Forex an OTC Market? Yes, forex is an over-the-counter (OTC) market. It operates through a global, decentralised network where currencies are traded directly between participants, rather than through a central exchange. Retail traders access this market via brokers, allowing them to trade currency pairs 24/5. What Is OTC in the Stock Market? In the stock market, the OTC meaning refers to trading securities outside of formal exchanges. These are often smaller companies that don’t meet the requirements for major exchanges like the NYSE and are traded via a broker-dealer network. What Are Examples of OTC Financial Products? Examples of OTC financial products include bonds, derivatives like swaps and options, unlisted stocks, and currencies. These products are traded directly between parties, often through brokers, without a central exchange. What Is an Example of an OTC Platform? An example of an OTC platform is OTC Markets Group, which facilitates the trading of unlisted stocks through tiers like OTCQX, OTCQB, and Pink Open Market. What Is OTC in the Crypto Market*? In the cryptocurrency market*, OTC trading involves large transactions of digital assets conducted directly between buyers and sellers, often through brokers, bypassing traditional exchanges for greater privacy and flexibility. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
SELL EUR/USD (A Fundamental and Technical Outlook)Results May Vary: 1.01-1.015 range of exit 1) Volume rally shows investor sentiment into USD as many countries are faced with tariffs from the Trump Administration with heavy FDI inflow. - FDI will continue as foreign investors flow capital into GOLD/USD/CHF (safe haven) to offset local volatility. - High likelihood Trump goes through with tariffs which would damage everyone, including US. However, US would be hurt less, solidifying US dominance as his pride. (Need to watch for every Euro Zone country accounts). - Inauguration 01/20/2024 2) Euro Zone in heavy recession with rate cuts showing limited stimulation. 3) Investor sentiment, insane USD overvaluation short term. 4) Post market hours show price consolidating with complete flat line volatility. 5) Other factors also play in. EUR/USD trade compatibility allows KEY Government Leaders to make irrational decisions for benefit of own countries. Gov stability in Euro Zone will also attribute to EUR growth. Many factors to watch out for.
Short
by shades305
1
EUR/USD 4H Timeframe AnalysisEUR/USD 4H Timeframe Analysis Trend Analysis: On the 4-hour chart, EUR/USD is displaying a bearish structure with a triple top formation at the minor key resistance level of 1.04400. After forming the second top, the price broke below the minor key support at 1.03400, retested it, and then formed the third top at resistance. Currently, the price is trending downward toward the minor key support at 1.03400, indicating a potential breakout below this level to continue the bearish momentum. Price Action Expectation: Our objective is to wait for the price to break below the 1.03400 support. A break below this level will confirm further downside, providing an opportunity for a short position. Fundamental Correlation: The ADP Non-Farm Employment Change and Unemployment Claims reports scheduled for release later today are critical events that could heavily impact the USD. Stronger-than-expected ADP data and lower-than-expected unemployment claims would indicate a robust labor market, potentially strengthening the USD and aligning with our bearish view on EUR/USD. Trade Setup: Trade Type: Sell Stop (Breakout Trade) Entry: 1.03340 (on confirmation of a break below support) Stop Loss: 1.04360 (above the resistance to account for false breakouts) Take Profit: 1.01220 (next significant support level) Conclusion: EUR/USD is poised for a potential bearish continuation, with the triple top formation and recent retests suggesting further downside. The upcoming ADP Non-Farm Employment Change and Unemployment Claims data could provide the catalyst for a breakout below 1.03400. Wait for confirmation of a break below this level before entering a short position. Risk Management: Maintain a disciplined approach with a 1:2 risk-to-reward ratio. Position sizes should align with your account equity, and it’s crucial to monitor real-time price reactions to validate or invalidate the setup, especially during and after the news releases.
Short
by RebornFXTrader
Fundamental Market Analysis for January 8, 2024 EURUSDEvents to pay attention to today: 15:15 EET. USD - ADP Non-Farm Employment Change 21:00 EET. USD - FOMC Meeting Minutes EURUSD: On Tuesday, the EUR/USD exchange rate declined against the US dollar, falling by four-tenths of a percentage point after a failed recovery to 1.04000. The pair is currently trading below last week's 26-month low, but the difference is minimal. Market analysts are optimistic about a reversal, as the Federal Reserve continues to recover towards 1.02000. The European Harmonised Index of Consumer Prices (HICP) was published in line with expectations, with the annual HICP for the year ending December rising slightly to 2.4% y/y from the previous reading of 2.2%.However, much of the upward pressure in European inflation figures appears to be either embedded in older figures or related to non-structural items, giving Euro traders some hope that things will continue to improve. In contrast, the US ISM Services Purchasing Managers' Index (PMI) business activity survey and the ISM Services price data for December were both weaker than expected, raising concerns among market participants that the Federal Reserve (Fed) may not be able to deliver as many rate cuts in 2025 as investors had originally anticipated. In the US, the agenda for the upcoming trading session includes the release of December ADP employment change data and the minutes of the Federal Reserve's latest meeting. While ADP employment data is not considered a reliable predictor of Friday's Non-Farm Payrolls (NFP) data, traders are not overreacting to significant deviations from forecasts.Investors will be looking for any indications that could potentially lead to a rate cut before June, which includes a notable softening of the labour market. Trading recommendation: Trading mainly by Sell orders from the current price level.
Short
by Fresh-Forexcast2004
Learn What is Confirmation Bias | Trading Psychology Basics In this educational article, we will discuss one of the most common cognitive errors of newbie traders - a confirmation bias. In order to better understand that term, I want to start with the example: Let's say that after doing some research, you are highly convinced that Bitcoin is bullish and that it is a decent investment. You decide to buy that from 90.000 level, expecting the exponential growth. Instead of growing, however, the market starts falling rapidly. Rather than closing your position in loss, you decide to do a new research and execute the analysis, you start looking for the proof of your pre-existing beliefs. You completely neglect the voices of Bitcoin sceptics and ignore bearish clues on the price chart. You consider only the facts that support a bullish outloo k, not letting you accept the other point of view. You become a victim of a confirmation bias. Unfortunately, such a psychological trap frequently prevents a closing of a trading position in time, leading to substantial losses. Confirmation bias is a common psychological error that makes a subject overvalue the information that upholds his existing beliefs and undervalue the opposing one. Here are the most common symptoms of that trap: 1️⃣One is neglecting the objective facts. 2️⃣One is interpreting information in a way to support the existing beliefs. 3️⃣One is considering only the facts that conform with his point of view. 4️⃣One is completely ignoring the information that challenges his beliefs. The only way to beat a confirmation bias in trading, is to learn to analyze the market from sellers' and from buyers' perspective . Your task is to compare the view of the 2 sides, and pick the one that is stronger, holding in mind the fact that everything can change. You should always remember of the changing nature of financial markets and be ready to always reassess your views. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
1
EURUSD H1 | Bearish ReversalBased on the H1 chart analysis, we can see that the price is rising toward our sell entry at 1.0376, which is a pullback resistance close to a 50% Fibonacci retracement. Our take profit will be at 1.0308, a pullback support level close to a 61.8% Fibo retracement. The stop loss will be at 1.0437, a swing high resistance level. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Stratos Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Europe Ltd, previously FXCM EU Ltd (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Trading Pty. Limited (www.fxcm.com): Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com Stratos Global LLC (www.fxcm.com): Losses can exceed deposits. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants.
Short
by FXCM
EURUSD Trading JournalEURUSD Trading Journal Jan 8 Yesterday Price did retrace Mondays efficient FVG. Price did come up to the .70 and past it creating equal highs before gravitating to the equal lows for the low target for today. I could see Price consolidate in Asia maybe London after 2 huge range days and 3 red folder for DXY in NY session. That said I suspect that Price will gravitate to the .50 where there is a H FVG and press up to the .79 H FVG and possibly the clean equal highs.
Long
by LParnell
2
Trading Signal for EUR/USD for January 8-10, 2025? The euro is trading around 1.0404, making a technical correction after an attempt to break the bearish trend channel but without success. On the h4 chart. we see technical correction. Therefore, if EUR/USD consolidates below 1.0430, it could continue its fall in the coming days until the price reaches the 21 SMA located at 1.0335. If the euro breaks and consolidates below 1.0330, we could expect a return to the lows of early January around 1.0227. This level is key and it is expected that in this area the euro will find good support which could give it a new bullish impulse. Conversely, if the euro consolidates and breaks above 1.0430, it is likely to continue rising and could reach 1.0477, 1.0498, and even 7/8 Murray at 1.0620.
Short
by CEO-PREMIUM-ANALYSIS
Neutral on closeLeading on from yesterday where I'd used the weekly range, I now favour the accuracy of the daily levels since we have more data. We're presented with a bearish candle that closed inside the range of the highlighted parent candle. So, that FVG on DXY is still there, also the pound swept yesterday's high. It seems neutral, eh? I still think there will be short term buying. At this moment in time, it's still too soon for me to enter this trade. I will check the 9am open for any potential after the red flag news. Otherwise, see you after 5pm EST.
by PointOneFx
EURUSD Wave Analysis 7 January 2025 - EURUSD reversed up from resistance zone - Likely to fall to support level 1.0255 EURUSD currency pair recently reversed down from the resistance zone set between the resistance level 1.0435 (which has been steadily reversing the price from the end of December), 20-day moving average, 50% Fibonacci correction of the downward impulse from December. The downward reversal from this resistance zone continues the active minor impulse wave 3 from the start of last month. Given the clear daily downtrend, EURUSD currency pair can be expected to fall to the next support level 1.0255 (which reversed the price sharply at the start of January).
Short
by FxProGlobal