Welcome everybody, I hope that you all had a great trading day today. I actually missed the drop in the Eur/Usd. I had a short position on the Eur/Usd and I closed it for a 10 pip profit and just as I closed it the pair broke the shelf and went straight down about 80 pips. I don’t know what I was thinking. Oh well, there will be another one right around the corner.
In early session trading the Eur/Usd moved lower and broke down below the previous support level of 1.3434. When that support level broke it united more selling. The price gradually dropped throughout the London and New York Trading Sessions ending at a low around 1.3300. This is a continuation of the current downward trend that had stalled for several weeks. This new wave of selling could take the Eur/Usd to 1.3200 and beyond.
The best way to trade this pair is to focus on selling all rallies. If we being to get a rebound I would look for selling areas around previous support level in the 1.3400 to 1.3450 area.
One way that this down trend could possible turn around is if there is a high impact news announcement that comes out as a major surprise. A news announcement is what started this current down trend back in early December.
A great way to keep up with your Forex News is to check out Forex Crunch which has an update on all the important news announcements and what they mean.
Winner’s Edge Trading, as seen on: