Hello traders, thanks for coming back again, I have another technical analysis that I hope will give you all some insight into how to trade this pair.
The Eur/Usd is heading back down to the important support level that has been tested twice previously. If this level holds it could be a good opportunity to enter long on a 1 hour candle close that is higher than the previous candle off of the bounce. I have been looking for a good trade to enter into my Forex Trading Journal and this is one of the trades that I am looking at. So if I decide to make a trade make sure that you check the journal and I will put all the trade information in that category.
So this technical analysis is to watch the 1.2130 area for a bounce or for a possible break to the downside. One thing to remember is that when it happens it could be fast so one way to play it may be to put in entry orders on your trading platform or set price alerts. The key is to not enter in anticipation because no one knows what will happen, but rather enter on what the charts are telling you. What I mean is: go long if there is a bounce and go short it if breaks on through to the other side.
Look at the one hour chart below.
Eur/Usd June 3 1 Hr chart
If you look at this chart you can see that there is a descending triangle forming. This type of chart pattern many times signals a possible downward move. So be prepared for anything and use make wise trading decisions do not act on impulses.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis is provided to assist the forex trading community here at Winners Edge Trading to make informed trading decisions. If you would like to get more help then you can try our our premium trading service.
One other point always make sure you are keeping up with the news of the day and that is why I am always reading other blogs.
Other Blogs I read:
Forex Crunch: Higher Tensions towards the Non-Farm Payrolls
The GeekKnows-Eur/Usd daily commentary
One other free trading tool I recommend is Currensee because they allow other traders to see each others live trades so you can learn from real traders.
