I started my forex trading on Aug 08 08. One of the most challenging time to start in.
The subprime crisis was boiling hot and market sentiments were off the chart.
1 year on, here i am, having faced numerous margin calls, ups and down. I learned many valuable lessons. Most of which, i strive always to share to all here.
Let’s discuss about how our favorite pair EUR/USD has been for the past 1 year.
I was one of them until i decided to trade the chart rather than some nonfactual belief that ” it must go up now”
After around March 09, the “road to recovery” began and we steadily began to make higher lows as bounded by my green line.
The interest portion has been circled by me.
We are still making higher lows but looking at the momentum, gone are the days of huge ranges for this pair.
We have been in such conditions for almost 3 months now and i am taking the liberty to see this as a market condition pre- AUG08.
Having said so, the crisis is far from over. Recent news of mortgage loan delinquencies bring chills to my spine.
Well, i choose to be more optimistic instead and after all, markets are all about sentiments right?
If what i felt is indeed true, i will be looking for clues with respect to pre – AUG08 conditions,
- rising oil prices
- rising s & p 500
= Rising EUR / USD
Having said so, i will like to point out this red horizontal resistance line that i plotted from DEC 08.
We are right about there now and hence caution should be taken. A bounce down may not be a surprise.
Proper money management is vital as usual. ( I have articles about this you can read. Do a search on the top left )
Trade safe and cheers.
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