EUR / USD is simply ranging afterall. A clue from S&P 500 anyone?
I consider myself a medium term forex trader.
I am poor at intra day and usually fair better in positions lasting days.
Therefore these days to me from a medium to long term view, EUR / USD is simply ranging.
A common condition of the forex market.
Hence i urge everyone to always relook at the bigger picture and consider your positions.
This is a daily chart and we are pretty much still bounded by 1.42 and 1.38 since the end of May 09.
May i gently remind you of my belief that resistance and support is never a pip and hence i always give or take a 100 pips when considering major lines.
The recent chain of worst than expected news have brought down the pair.
Currently, it is stopped by 1.4000. A very strong sentiment value.
If i need to speculate on the pair’s direction, i will be looking towards the upside.
Why?
Remember my comment about how S&P 500 trends usually produces a more subtle version on the pair?
Take a look at S & P 500 for the same period above.
It has been ranging too and has recently broken out of it’s range to the upside.
However we may wish to note that the S & P 500 is reaching 1000 soon.
A possible strong resistance level no doubt.
If,
- There are no news bad enough to trigger major risk aversion
- S & P 500 climbs up and away beyond 1000
- The loose correlation between S & P 500 and EUR / USD remains
I may very well be looking towards this pair raising.
As always, trade safe.
