The Eur/Usd made a huge surge because of the change in the market sentiment or bias. At the beginning of the Many people were bearish on the Euro and was basically saying that the support of 1.2650 was going to be hit. However we now know that the bias changed and that never happened. Not only did the bias change but it took off in the total opposite because of all the news surrounding the Euro and the bailout possibilities. Be cautious here because after this strong run it will be interesting to see if the pair will continue to move higher. The Euro is still fundamentally week and bailouts don’t work because the people you bailout need to change for the bail out to be effective.
One thing to note is the turn started slowly. a few news releases here and there about Japan entering the bailout and then China. Once those news releases started coming out in a steady stream the bullish momentum took off and the price went to the moon. I gave everyone a warning about this potential reversal in the article I wrote titled
, if you read it again you can see that I warned about the potential change. I saw it coming and I did not know for sure but I had a feeling, if you have ever had a feeling before then you know what I mean. I dont recommend to trade by feelings by the way LOL use a plan and go with your entry points.
The funny thing is I didn’t even follow my own advice and got caught up in the moment and made a trading mistake here in the post yesterday where I talked about my trading mistake. The the good news it that I am back on track and in today’s trading I got back on track today. That is one of the key points I will leave you with today and that is: When you make a trading mistake that you jump right back in, shake off the loss and build up your confidence. It can help top revaluate your plan and look at where you went wrong and attempt to avoid that mistake again.
Please Follow Me on Twitter and you will get all of the trading updates and when I post a new blog post. I also want to leave you with a heads up an a free trading video that my friend Jakob recorded. Jakob has decided to share this video with us so I went and checked it out right away and I thought I would share it with you as all so go visit Trade Profits and check it out.