Here is why this week I’ll focus on the short term charts
We’ll have two important announcements this week:
On Friday Fed Chairman Bernanke speaks and on Saturday ECB president Draghi speaks. And believe me, these two announcements could have a great impact in the markets.
So I’ll close all my trades before Friday this week.
And there is also another factor, it’s the last week of August, as many of you already know, August is amongst the months with fewer trading volume.
So, we are not going to see a lot of movement this week, and it’s exactly the reason why you should focus on the short term charts.
Don’t get me wrong, of course I’ll analyze the long term charts to determine which currency pairs to trade and on what direction, but
I’ll monitor the short term support and resistance levels to see if I can close my trades there.
What do you think? Are you with me?