Saturday, February 16, 2013

Similar chart pattern developing in the EUR/USD

It has been quite a trading week! I made one of the best trades in Forex last Thursday, netting well over 120 pips in profit, shorting the currency pair at 1.3450 with a target set on 1.3322.  The question is, will it happen again?

Lets take a look at the $EUR/USD chart below;

Click on the chart for a larger version
The circles indicate the weekends, the first one is last weekend - the second one is this weekend.
Now I don't know about you but I see a similar development on the EUR/USD chart. Does it mean more downwards pressure? Can be expect to see the EUR/USD to trade below 1.32 next week? Right now it's trading right in the middle of 1.34 and 1.33. I drew fibonacci retracement levels on the chart as well to show how the currency pair is crashing through all of them. Horrible financial news from Europe is  the cause of it and also it's breaking through psychological technical levels as well.

I'm going to keep a close eye on this pair next trading week, whether that'll be bullish or bearish is hard to tell, but whatever trading level it will breach (1.33 and below = bearish trend, 1.34 and above = bullish) I'm following the trend!

You can follow me 'live' next week on stock twits and trading view and get my free buy and sell signals.

You can find (follow) me on stock twits at stocktwits.com/vdmtrading and tradingview.com/vdmtrading

I hope to see you there, and lets make some money!

-John

Disclaimer:

All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.