FOREX ALERTS >>
DailyFX Plus Login

weekly trading lesson

Article

Chart of the Day: EUR/USD
Tuesday, 28 October 2008 04:24:54 GMT  |  Thomas Long, Power Course Instructor
Delicious
Facebook

Following up on my previous post concerning about the hourly chart of the EUR/USD, we can see that the market did trade down through support and has now found new support and is starting to move up.

10-28_eurusd

Since the daily and 4-hour charts still show a strong downtrend, this is not the time to buy but rather the time to once again look for a selling opportunity. Normally, I would look for a move up to resistance on the 4-hour chart to find my sell level and I will continue to do just that, but I would also sell on a move down through support on the hourly chart. However, it would take a move down through support to sell at this point since this market is very oversold and due for some sort of correction to the upside. But sometimes you can't stop a strong trend which is why we always want to trade in the direction of the trend on the daily chart.

More Articles

Feedback Form