The Euro Dollar has a support level which has produced a minor bounce. As mentioned previously on Javid's blog the Euro may find support and bounce or travel sideways which is quite normal after a major move. Every big move tends to have consolidation before a continuation or reversal. If the Euro Dollar continues then we will see a breakdown of the support level.
There are at least two methods of making money on a move like the Euro has done from the all time high. One is two take out a long term trade and manage the positions while riding out minor reversals. The other is to use shorter term tehnical analysis on shorter time frames and get the minor reversals including the longer term trends.
Right now on the Euro, our model highlighted a long position and a breakdown of the support zone could provide the short continuation. However, if we get a 123 786 with evidence from our supporting indicators then we could see a reversal in place. That said, it is always easier to trade with the trend and right now the trend is down. Trend trading will provide less stress and usually bigger rewards.
My next update will be a the strategy I mentioned last week.
Until then, good dynamic trading.
Forex Analyst
Anne Chapman
