Monday, July 20, 2009

Forget crosses for now, back to the EUR/USD

I did a lot of research trading cross currencies, the one I had my eye on was the AUD/NZD. I came to find out that really it's a totally different world, and it's very hard for me to adapt to the pair since not only the pair is different, so is the news surrounding it. Technical analysis remains the same of course no matter what pair it is. But it takes too much time away to do extensive research, especially if you see out of the corner of your eye the great money making opportunity is rising on the EUR/USD. I can barely trade GBP or JPY, so I'll leave cross currencies for what they are right now and start focusing again on the EUR/USD, at least it's something I'm semi-knowledgeable in.
What's going on with it? Better economic US data driving the pair upwards and soon the Euro-Zone is facing a serious economic crisis if they stay on the path it's currently on.
EUR/USD trading at the moment at about 1.4223, which would have been a crazy number a few weeks ago when most investors predicted a much lower value. However it seemed the pair has stalled against it's resistance level. It's a good time to jump in with a stop placed @ 1.4285. There will be a pullback soon. Maybe not from the US side, although that's likely.. more from the fundamentals from the Euro zone.

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