- This article, written by Patric Tengelin is taken from the FX Trader Magazine (JAN/MARCH 2013 issue).
In the stock market, the ultimate stock to day trade is whichever best fits your trading style and produces enough profits to buy 100 new shares faster than trading any other stock. We are market technicians and our favourite FX pair is the EUR/USD on the 30-minute chart. Technical analysis is not so much about the actual lines on the chart as it is trading the reaction of other traders at those lines.
By the end of this article you will have a clear understanding of how to eliminate the guesswork in trading and always be on the right side of the market.
This particular strategy will appeal to reactive traders who do not front run price action. The entries will be inferior but the hit rate superior. The equity curve will not be subject to the wild swings s o m e t i m e s experienced by anticipatory traders who constantly try to pick tops and bottoms but before we get into the meat of the strategy and when it is most profitable we need to make a few assumptions. We will list days when you should not trade at all and then talk about the time of day when you should look for setups. You will also learn about the key numbers for the EUR/ USD and how they constantly show up as support and resistance. Throughout the article we will give examples of the mechanics behind price movements and how to interpret price action, but let us first talk about indicators.
Editors’ Picks
EUR/USD moves sideways below 1.1800 on Christmas Eve
EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.
GBP/USD keeps range around 1.3500 amid quiet markets
GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.
USD/JPY corrects further to near 155.80, gives up entire BoJ policy-led gains
USD/JPY surrenders its entire gains made on the BoJ policy announcement day, and retraces to near 155.80. Investors are in vogue over the outlook of the BoJ’s monetary tightening campaign. The Fed is expected to cut interest rates by at least 50 bps next year.
Editors’ Picks
EUR/USD Price Annual Forecast: Growth to displace central banks from the limelight in 2026 Premium
What a year! Donald Trump’s return to the United States (US) Presidency was no doubt what led financial markets throughout 2025. His not-always-unexpected or surprising decisions shaped investors’ sentiment, or better said, unprecedented uncertainty.
Gold Price Annual Forecast: 2026 could see new record-highs but a 2025-like rally is unlikely Premium
Gold hit multiple new record highs throughout 2025. Trade-war fears, geopolitical instability and monetary easing in major economies were the main drivers behind Gold’s rally.
GBP/USD Price Annual Forecast: Will 2026 be another bullish year for Pound Sterling? Premium
Having wrapped up 2025 on a positive note, the Pound Sterling (GBP) eyes another meaningful and upbeat year against the US Dollar (USD) at the start of 2026.
US Dollar Price Annual Forecast: 2026 set to be a year of transition, not capitulation Premium
The US Dollar (USD) enters the new year at a crossroads. After several years of sustained strength driven by US growth outperformance, aggressive Federal Reserve (Fed) tightening, and recurrent episodes of global risk aversion, the conditions that underpinned broad-based USD appreciation are beginning to erode, but not collapse.
Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026
Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.
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