Every day this week the Eur/Usd was hitting new lows and it appears we are in a straight free fall. To answer the question when will the bleeding stop we have a couple of support areas at the 1.3823 area which was close to the close now. Other areas where we has support where we could see stalling is the 1.3400 1.3500 areas.
I have identified potential support and reverse areas on the daily chart below.
Daily Chart *Note Click on the chart to learn about our trading system.
One key point for traders to remember is to keep a watch out for the bounce. When you have a free fall like this it can keep going for a long time and it is hard to find buyers. However there will be a point when the trend may stop or at least a strong pull back and it is important that you don’t get smacked when it does.
A key area of resistance when we get a pull back is going to be 1.4000 and 1.4200 areas.
Monthly Trade Update:
That Aud/Usd trade I posted at the beginning of the month turned out positive for those long term traders as the month of January was another down month for the Aud/Usd.
Monthly Aud/Usd Chart
Winner’s Edge Trading, as seen on: