- January 18, 2018
- Posted by: Daniele Prandelli
- Category: Senza categoria
Something very important happened to the EUR/USD exchange, something we cannot avoid looking at, something we should all know (if you missed it)
WHAT HAPPENED TO THE EUR/USD?
The EUR/USD moved in a new territory since January 2015, because EUR/USD moved above 1.21 with an important up acceleration on Friday, January 12.
WHY IS THIS LEVEL SO IMPORTANT?
We have to pay attention to it because since EUR/USD exists, this area has been a very important support/resistance. Plus, in September 2017, we saw a High right at 1.2093, and then EURUSD moved back again.
HOW SHOULD WE APPROACH THIS SITUATION?
I am not a big fan of FOREX, and I personally do not trade it aggressively. But this can be a very important signal.
You can agree with me, this is not the right time to bet for a downtrend! The last movement above 1.21 is definitely bullish. It does not mean EUR/USD will not go under it anymore, we cannot be sure about it, but we have good probabilities to see an up movement that we can use to make some profits.
Personally, I opened immediately a LONG position above 1.21, then I took part of the profits and I let the remaining to run. In case EUR/USD remains sideways for a while, I will play with it, buying and selling inside the range of the sideways pattern, but always with LONG positions, because I am not opening any SHORT position as long as EUR/USD remains above 1.21. Plus, while I play with the sideways pattern, I remain always LONG with a part of my investment, to take advantage of the uptrend in case EUR/USD keeps moving higher and higher.
SOMETHING MORE TO MONITOR: GBP/USD
During these days, I am also monitoring GBP/USD because I have a very important area which can work as a resistance or a breakout level. This area is at 1.39. Above this level, we can have one more signal for a possible continuation to the uptrend. We can appreciate also the precise trend-line supporting the uptrend.
The charts here above are self-explanatory: the EUR/USD moved over 1.21, which is a bullish signal, of course. GBP/USD is approaching a very important level, 1.39; a movement above it can suggest also the continuation of the uptrend in the EUR/USD.
While we monitor these levels, we do not use them at the pip, I mean, you have to develope a strategy around it, because it is normal to see some movements over these important levels, but then the Market can move back in a few days. Having some little losses while we try to keep the position is normal and not painful; from these important levels, we can expect a new trend, and the best profits will be made once we are able to follow it. Patience and discipline will be always the key of our success.