It is hard to fight a strong trend like the Eur/Usd is currently on but the market will give clues when the trend is likely to reverse.
I want to show you some of those with the current Eur/Usd move. I am not saying we are there yet but maybe we can be ready for when it does reverse.
The first thing I want to point out is that in an up trend we have higher highs and lower lows. Let me show you what I mean with a chart.
You see each of the highs is higher and each of the lows is also higher. This is wise to buy on all pull backs when the price is testing the higher lows as this will give a great level of support.
However when the current low gets tested and broken then that is a signal that the trend could be changing. It is always good to trade with a trend but it is important to watch the lows so that you don’t get surprised by a sudden reversal.
I have linked to a post that teaches a reversal chart pattern that can help you identify reversals as well.
I also found a post that shares a possible scenario in the Eur/Usd
Winner’s Edge Trading, as seen on: