The Euro Made a Comeback

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

Euro Bearish But Forex Sentiment Can Change Quickly

, 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.

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.
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  • http://www.winnersedgetrading.com caseystubbs

    Thanks Liviu is that a prediction?

  • http://www.innerfx.com liviu

    mirror mirror on the wall, when on earth will the EUR fall? :)

  • http://www.winnersedgetrading.com caseystubbs

    Simit, Thanks for you comment, Yes I am waiting for a short I Cant go long at this level it is just too high.

  • Anonymous

    hi casey,

    thanks for sharing your story. the rally sent us back to the top of the range on the daily chart; i think we may be in for a move back down and this is a good short opportunity. we’ll see! :)

    — simit

  • http://www.winnersedgetrading.com caseystubbs

    Yes Geeky I agree with you on why the Euro Bounced but I think this is short term because bailouts dont usually work but only time will tell.

    thanks for the comment.

  • http://www.winnersedgetrading.com caseystubbs

    Thanks yohay, I will be watching that line as you suggest.

  • http://www.winnersedgetrading.com caseystubbs

    Yes, I let your trading plan make the decision so you don’t have to.!

    Thanks for the comment.

    Casey

  • http://www.winnersedgetrading.com caseystubbs

    Jakob, That is incredible advice Jakob, I think that comment deserves an entire post to elaborate on what you just said. I should invite you to do a guest post on the subject here on my blog !

    I hope my readers will take note of that because I know that I will.

    Thanks

    Casey

  • http://www.winnersedgetrading.com caseystubbs

    Thanks so Much Sayed for the comment I will talk about Stop loss in the Future.

    Casey

  • Yohay

    Indeed. 1.3440 is a very tough line now.

  • Sayed Haider

    Yes I am agreed with you as you were the only one who warned that it is conseautive 5 days euro is falling and from here it will take a U turn and this is what happened. I think almost 20 top forex gurus were in the opinion that euro will touch 1.26 level.However I went long but could not make profit as I was stopped out at my stoploss position on 1.2960 and unluckily this was the point where Euro made an upward trend. I will request also to please discuss oneday about the stoploss and limits positions which I thing is very important.