Sunday, December 27, 2009

Trading week about to begin. Let's prepare!

Day 1 of my trading project will start tomorrow. At this time trading is still closed but is about to begin in a few hours or so. Plenty of time to do some more research today. It's going to be slow as is because it's the end of the year and is kind of notorious of being slow in the trading world. Especially now that there are not really any major events on the calendar. Fantastic timing to set up a trading project isn't it? Although the most money is made in volatile markets this also carries more risk. I thought to maybe start the project off slow (and this will probably be not the last project) and see how well I do in a 'slow market'.
Anyway, I have a little preview, below the chart of the EUR/USD. I've drawn in some pretty lines to indicate what I think the major resistance levels are that are relevant to the upcoming trading week. The final price is not totally correct and should say 1.4387 instead of 1.4379 but the charting software glitched up or something, but for this analysis it doesn't matter.

What I was trying to get at here is that the pair broke through resistance level 6 on the chart shown above indicating a reversal of the trend. This might be the result of weak home sales in the US. I have to be very cautious trading this pair and depending on what's going to happen tomorrow I'm almost wondering if I should stay away from it all together and pick USD/JPY or GBP instead. Meanwhile I'm going to see how other traders stand on this, tomorrow we'll see if we can enter any trades.

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