Hope your weekend was nice and relaxing because the market are going get a little crazy this week…
There are a ton of important announcements this week, but the most important of them all is the FOMC rate statement…
Will they rise the interest rate?
Nobody knows for sure (but Yellen and her team)… Some analysts say the will, some others say they will wait until December…
I tell the students of my Forex Course that we need to be extremely smart about the way we trade this week. We need to make sure to trade only the currency pairs that have the clearest market conditions… we need to make sure, both, the short term chart and long term charts have clear S&R levels, we need to make sure they have a good profit potential, among other things…
Anyway… lets talk about the EURUSD
EURUSD long term analysis
Last week I talked about an opportunity to go short on the EURUSD and still think there is enough room to take more trades.
The EURUSD is clearly trading in a bearish condition, it was rejected from an important LT resistance level, therefore it is likely to continue its way down until it reaches its support level.
Here is the daily chart:
So, if its trading in a bearish condition… what are you going to do???
Obviously… look for short opportunities.
EURUSD short term analysis
Right now, the EURUSD is trading around the previous high… let time show you the chart:
There are two strategies to trade the EURUSD right now:
Retracement signal: if it forms a significant pattern with downward pressure, just where it is currently trading, we can go short from there.
Breakout strategy: If the EURUSD breaks through the lower support level, we can go short from the eventual breakout.
What do you think about my strategy to trade the EURUSD?
What other instruments are you trading?
Dont hesitate to comment below should you have any question/feedback