It has been a while since I have talked about the Forex market. I have been a little to busy to keep up with the technical analysis but I have taken a new long position recently. I see the rising price of crude oil weakening the dollar more.
The Euro has been on a retreat from record highs but the drawback seems to be nearing an end. Its looking like the combination of rising crude oil prices and weak financial numbers on Wall Street have made an opportunity to buy the Euro. This is based only off of economic data and no chart analysis. I will update later.
It’s been a few days since I have done an update on the Euro/USD and my Forex trading. The Euro has been a good currency for investing this month, as I have now had well over 50 trades for a positive gain of 241 pips. In the latter part of this month the Euro has seen a slow down and some strong selling driving its price back down some.After hitting an all time high on the 16th of 1.5904 it began a retreat back down 1.5342 only to start back up to what looked like a retest of the 1.5904. It didn’t quite make it and for the moment stopped out at 1.5844. It now looks to be in a period of consolidation and taking any positions on this pair at the moment is not for me.
There are many other pairs that can be traded fortunately so there is usually always trades that can be made. I try to stay with one currency and focus my technical analysis on it. If you haven’t tried Forex yet, make sure and get your free practice account to see if you can make it in the world of currency trading. It cost nothing and is much like a one of those virtual stock market challenges but the Forex market is much more exciting as it is open 24 hours a day 5 days a week. Get your free practice account with the banner above.
So anyway, today the feds announced a .75 rate cute to try to save what’s left of our economy. This briefly sent the EUR/USD on a plunge as Wall Street gained over 400 points. After falling all the way back down to 1.5612 it looks as if the Euro is trying to make some recovery. Its only been a couple days ago the Euro was pushing record territory up to 1.5900 and then some. I am looking for a retest of the 1.5900 in the coming days as the rate cut news fades away.
Well yesterday was a great day for trading. The EUR/USD continued marching into record territory as the Dow shed its gains from Tuesday. Overnight the Euro has continued into the 1.5600 + range. Currently its trend seems to be turning down, or is at least in a period of indecision.
Currently I am refraining from any trades as I wait to see what’s going to happen. Being able to stay out and wait for the right buy/sell signals is another important quality to being successful at trading Forex. Sometimes it just simply isn’t the right time to take a position.
I would love to jump in and add more gains to the 80+ pips from yesterday but I also don’t want loose what I gained yesterday. Just as I have been writing this the Euro has fallen almost 40 pips, just when looking like it might try to go up. Its buy signal was to weak and for a good reason.
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