Read this if you are trading the EURUSD right now
Yesterday I received an interesting email, a fellow trader asked me how come I never analyze the EURUSD?
This was my answer:
I do analyze and trade the EURUSD, I just think that right now it’s not the right time to trade it.
You see, what I try to do each day is analyze both, the long term and the short term charts and identify the currency pairs that have: a clear condition on both, the short and long term charts.
When we have a clear condition, we know what the market is likely do, then all I do is to try to find an entry on the short term charts (in the direction of the long term market condition).
And believe me, the EURUSD is far from being clear right now. Take a look at its weekly chart:
Do you have any idea of what the EURUSD is likely to do? If you do, please comment below, because I don’t…
And if you take a look at its short term charts, it’s worse…
I’m aware that some traders like to trade the EURUSD because of its tight spread, but let me ask you this:
What would you trade:
- A currency pair that has a tight spread but you have NO idea of where it is likely to go?
- A currency pair that has a larger spread and you have it clear where it is likely to head?
Please comment below and share your thoughts