How to trade eurusd (with the breakout strategy)
Hi guys, on this thread I will be discussing my eurusd breakout strategy and will try to keep it as simple as possible. A few points to remember before I start:
1. EUR/USD is best traded during the London & New York sessions
2. EUR/USD market opens on Sunday night & closes on Friday night, but the best time to trade EUR/USD is the London & NY sessions
3.EUR/USD moves about 100 pips in a day
4.One pip of EUR/USD is valued at $10 when trading a standard lot, $1 for a mini lot, and $0.1 for a micro lot
5. EUR/USD is moved by economic news such as NFP, CPI, PCE, Interest Rate decision, etc.
6. EUR/USD is positively correlated with GBP/USD so they move in similar motion
7. EUR/USD is the most traded fx pair, accounting for 21.2% of all the forex transactions that took place in 2025.
8. Large EUR/USD exposure is seeing an increase in hedging with futures & options
A breakout strategy means waiting for price to move out of a particular range before engaging with a buy or sell order.
My EUR/USD breakout strategy involves waiting for price to break out of either the Asian range (00:00 midnight to 5:55 AM UTC time) or breakout of the Pre-Frankfurt range (6:00 AM to 6:55 AM UTC time) before engaging.
It is important to mark out these ranges on your chart with a rectangle for better visuals.
This thread is valuable, keep the discussion going.
Let me add, if you see a breakout of the Asian range, and you are a break trader, don't just jump in on the break. Wait for the 15M to break & close above. Wait for a pullback, and then enter.
Many breaks during the Franky turn into fakeouts.
a. This is 24th Nov 15M chart. You had a break of the Asian range (blue) high during Franky & London. And a pullback after the break.
b. This is the 19th Nov. 15M chart. You had a break during the last 30M of Franky & it got reversed. This is classic Franky fake.
Each session either follows or fades the previous session. You get actual breaks or fakeouts.
So, as you can see on this 5-minute chart, that price has broken out of the Asian range in an upward direction so we just wait for the first red candle to close below the previous graan candle then we sell
Now we have spotted the first opposite (red) candle on the 5-minute chart so we wait for price to close below the last green candle before selling so we avoid fakeouts
So, as you can see on this 5-minute chart, that price has broken out of the Asian range in an upward direction so we just wait for the first red candle to close below the previous graan candle then we sell
Today is a really good example of Franky faking the Asian range. The break below 80 is important for the fake to continue, but already it is up 10 pips.
I've closed most of my position at 11 pips. I've a small position running with SL just above pre's high.
So price has kept falling and if you had shorted the market at the sell trigger (outside the Asian range), you would have been in profit.
In the course of my training l have learned not to jump into trade as soon as my settings and border line are set.
ASIA are set from 00.00 - 5:55am
Internal rectangle lines are set from 6-7am.
When a trade breaks upward they is a tendency that it will come down ward so a sell of G/R should be set.
And when it breaks down wards there is a tendency that it will go upward, a buy trade should be set.
I also understand that it is better to start a trade from outside the box when you know you are in profits.
This is applied to the internal rectangle also of 6-7am
It is also important that l don't close a trade that breaks out from the top coming down the slop until it breaks out at the bottom border line .
I learned that if a mother trade is a buy, you should keep buying to the end.
Thank you