Sunday, July 26, 2009

Stop Trading, caution for the upcoming week.

Just in time before the markets open! I almost didn't make my weekly segment of Stop Trading!!, the wrap up of how my trading week went and what's coming up next week, because of internet connection issues. And in Forex trading especially it's not a good idea to have a bad connection going on. I should make this blog the EUR/USD pair blog since that's all I seem to talk about lately. But I'm just so fascinated by this pair. This is mainly because I'm originally from Europe and living in the US now for over 6 years. I see a lot of correlation of what's going on between the two economic blocks and cultures and the Forex markets. Given this fundamental background I seem to do pretty well choosing the right calls for the EUR/USD.
As you may have read in my previous post the Dow Jones Industrial Average was breaking the 9000 barrier last week driving the EUR up against the USD, not as much as I actually expected signaling that even investors now realize the Euro is a heavily overbought currency and is bound to be on it's way down. The question is by when. In my opinion this relies pretty much on what's going to happen on wallstreet upcoming trading week. I advise to use caution. It looks like investors are still not used to see green numbers and this is affecting the EUR/USD a lot at the moment. As you can see on the chart below, trading at the moment in a sideways market the pair is tapping resistance level frequently but is failing to break the barrier.
I'm not going to do any trading this week since I'm on vacation right now! That's right! I'm typing this blog from my hotel room, but I will be following the markets this week.

For all of you that do trade this week, good luck and happy trading --

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