Why I have not traded the EURUSD in the last weeks
I like to trade the currency pairs that have a clear market condition, when they consistently go from one important level to the other (i.e. support to resistance or vice versa), and certainly the EURUSD doesn’t have a clear condition. Take a look at the next chart:
On the chart above, does it look like a clear market condition to you? No. Do you know where the market is likely to reverse back? No, it just gets rejected from different levels (random levels), we can’t even call them support and resistance levels.
Now, take a look at the next chart:
This is the Norwegian krone (USDNOK), this one on the other hand, has clear support and resistance levels. It gets rejected consistently from the same support and resistance levels. On this chart, do you know where the market is likely to get rejected? Yes, once it gets close to the bottom of the range it is likely to get rejected, likewise, when it gets closer to the top of the range, it gets rejected.
See the difference? Which one is easier to trade? Definitely the second one, in fact, I wouldn’t even try to trade the first one. I’ll just wait until it gets clearer.