Simultaneous Release at www.thegeekknows.com
hope you had a great week full of harvested pips.
This week was rather ranging and many folks wrote to me to say that they were having problems navigating all the noise!
While this is the long term chart, i would like to highlight 3 points to you.
1) Notice how the currency pair whipsaws towards the end? That’s the week in review and the Dubai crisis probably had a hand in it. This is why in forex it is critical to have proper money management. I have a series of proper money management articles. Do read up on it if you are available.
2) 3 direct bearish attacks had been made over the months on the March 09 bullish trendline. Each had been thwarted by the bullish opposition. This seems to suggest to me that the underlying bullish fundamentals are strong. Whether these fundamentals are justified or not remains as another story as the economy remains fragile.
3) I plotted the horizontal line of 1.5065 as a resistance for any bullish moves and this week we shot above it. Although i noted that it was sharply rejected, that move probably open up for further bullish possibilities since the envelop was pushed further higher.
Once again i would like to remind you my dearest reader that forex is moved primary by sentiments and should this Dubai crisis trigger a fallout, the EUR/USD may dip towards the bullish trendline.
This is why it is important to have a trading plan with clear defined stop loss and take profit levels, structured within a maximum 2 – 3 % risk. As long as you stick to this plan, you will not be exposed to excessive risk. Read up on why you should plan your trades here.
We may have a choppy upcoming week as the bullish trend line moves higher, tightening the price movement range as the currency pair tries to break new grounds above.
Look to the equities for clues as usual.
Have a great upcoming week and as usual please trade safely.
Read more Forex Articles and Views by The Koala at www.thegeekknows.com