Saturday, June 27, 2009

Stop Trading, last attempt on EUR/USD this week

Welcome to the already 4th episode of my Stop Trading segment, which is released every end of the trading week (most likely Saturdays), and talks about new trading ideas for the upcoming week.
Nothing to be bragging about yet you think? Well if you consider I've never had any 'segments' in my blog at all I consider this a milestone! :)
Anyway, despite positive economic US data and negative EUR data, the EUR is still standing strong. However analysts speculate that there will be signs of reversal late (Thursday) this week. Yeah, I know what they are going to talk about! Will the ECB modify interest rates or keep them the same? Also the US labor department will release it's data too by the end of the week. So pretty much there is a lot going on for the upcoming trading week. Although I didn't lose any money this week, I hardly gained anything since the pair wasn't as volatile as I thought it was going to be. If this week not much happens in price, I'm going to put this pair on the back burner and start looking for other pairs to trade, most likely commodity pairs since they are better directed in this economy. But that's a good topic for next weeks episode of Stop Trading!!, let's take a look for what's for the week ahead;

USD currently trading at 1.4068 and it looks like the RSI is going all over the place right now, instead of being in overbought territory it shows under 50 which indicates in this market condition a 'stable' trend, which is in my opinion not the case at all. I'll see what happens tomorrow afternoon when the Forex markets open for me, but I'm tempted to sell this pair on Monday. We'll give it one more shot. With so many major releases coming up this week it has to do something! If nothing happens then I'm seriously are going to look for another pair.

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