See weekly chart of EURUSD below for the discussion that follows.
EURUSD made a hammer on the weekly this past week. It is also on a support (previous resistance) zone. Note that EURUSD has dropped sharply over the last couple of weeks, going long here will be much more risky. For this reason I will consider going long if price can retrace a bit before I enter in order to get a better risk to reward. Also, should I get in I will be quick to raise my stops or just close the trade if price doesn’t move in my direction.
This past Friday saw some big move accross many of the currency pairs as well as some other markets. In periods like these I like to let price settle first for some time before I trade. For me it’s a good time to practice patience and discipline.
CHFJPY (post from last week) attempted a bounce, but reversed and it is back at support again. I never got involved but will keep watching it.
Remember, always have your own trading plan and never follow other people blindly. Always know where you will be proven wrong on any trade and have stops in place. Stick to your stops and never bet the farm.
On Ideas: Please don’t take this as trading advise. Please do your own due diligence before entering any trade. Also see Disclaimers.
Thanks for reading.
Thanks and Regards,
Trading SOS SOS