The Dollar today weakened today for the 3rd straight day as a positive housing report pushed prices of the dollar lower against the Euro. This could be the start of a upward move that if the price of the euro pushes past 1.3325 that could elevate the Euro to the 1.3900 level Or if the price hits resistance and moves lower that could signal gains for the dollar to 1.2500 and beyond. We will be watching the news tomorrow. If the Non Farms Employment change is better than expected that could push the euro to higher levels.
A good Trading Strategy here would be to plot Fibonacci Retracement on a 4hr chart and then look at the levels. If the price goes past the .50% and begins to drop back down then the downward trend could continue. If the price goes past the 100% level than we could be looking at a pull back and the pair could be move up to higher resistance points. The key here is patience watch news releases and key support and resistance levels and wait for the market to give you the signals before entering.
Winner’s Edge Trading, as seen on: