Strategy Video: Setting Entries for a EURUSD Break, RBNZ Rate Decision
• Entry orders are a great way to set up trades when you are offline, but sometimes they are inappropriate
• Setting an entry to trigger on a major technical break or reversal - like EURUSD - can lead to false moves
• An entry order and event risk - like the upcoming RBNZ - is another recipe for false entries
Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups!
What kind of Trading best suits you? Technical or Fundamental? Short-term or Long-term? Take our Trader Survey and find out.
Setting entry orders that can execute a trade as it unfolds even if you're offline is a great tool. However, it can also bring with it its own risks. A good example of the pitfalls in placing entry orders is well illustrated by EURUSD which broke a key technical support last week in the wake of the ECB rate decision before completely reversing the move shortly after. While we cannot establish with certainty whether a break or drive that is setting up will be genuine or fake ahead of time, there are both technical and fundamental criteria that can help filter out the unnecessary risk. We discuss the right time to place entry orders making examples of EURUSD this past week and the New Zealand dollar ahead of the RBNZ rate decision in today's Strategy Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.