In the last few weeks I’ve been following the EURUSD very closely because of two reasons:
- I know most of you like to trade it because of its low spread
- In the last few weeks it’s been trading in a clear market condition
I don’t care much about the spread, you know I prefer to trade a currency pair with a larger spread but a clearer market condition, than a pair with a smaller spread and a not so clear market condition.
It’s all about the second point, in the last few weeks its been trading in a very clear market condition.
What do I mean by this?
It means that it has clear S&R levels and it’s been reacting to them on a consistent basis.
And you know what, that’s all we need to trade.
If it has clear support and resistance levels we know where the market is likely to get rejected, therefor we now where to place our entries, SL and TP orders…
Please tell me you agree with me.
EURUSD long term analysis
Here is my chart:
You see how the EURUSD it’s been reacting to the S&R levels, that’s like gold for us.
Ok, so it was rejected from an important support level, now I know it is likely to continue its way up. At least until it reaches its next LT resistance level around 1.3400.
Sometimes we like to overcomplicate things, but it’s not necessary. If the market is going up, just look for longs, if its going down just look for shorts.
Do you agree with me?
EURUSD short term analysis
And here is my short term chart:
Right now my main trading plan for the EURUSD would be to wait for the market to retrace back to the short term support level.
That’s because we dont have a clear short term resistance level yet.
What do you think about my EURUSD Analysis?
What is the currency pair that you trade the most? Is it because of the spread?
Let me know in the comment section.