My trades on the euro have been positive this week. However, after touching 1.4, its going to be more challenging. Euro Dollar have corrected about 160 pips from 1.42. Now, you and me know that the big boys have their sell order just above that 1.4 level hence for the correction.
I manage to get a few pips selling at those levels. You know, I am now trying to control my emotions and when I am profitable, I think the more we need to control our exuberance and remain calm and composed. You also need to take loses calmly or else you will be too emotionally affected to trade.
Looking at the chart above, I dont think I will take any trades at the moment. I will leave the market as it goes about consolidating.
I am looking at the price going above 1.394 and price closing strongly above the 21EMA. At the moment, I don’t see that and you wouldn’t want to be involved in that range unless that is part of your trading plan, trading small ranges. (You can do this actually, using momentum indicators like stochastics and RSI.)
The 4 Hour Charts, I just love looking at the 4 Hour chart. It has helped me a lot trading the markets using this time frame.
A short brief on the above charts. We see the price trying to hold above the 21EMA for the bullish trend to continue.
However, a deper correction can bring the price down to 1.38.
Take note that the indicators, stochs and MACD is still pointing down.
Ardy is a Professional Forex Trader specializing in the Forex market. He trades using both Technical and Fundamental Analysis and mentors other traders how to trade the Forex market using proprietary trading strategies which he has developed over the years. He started investing in equities in 1999 and trading Forex in 2008. He is the founder and lead currency strategist @ Forexachievers.com