We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Heads Up:🇯🇵 Retail Sales YoY due at 23:50 GMT (15min) Expected: -11.5% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-05-28
  • Heads Up:🇯🇵 Industrial Production YoY Prel due at 23:50 GMT (15min) Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-05-28
  • 🇯🇵 Unemployment Rate Actual: 2.6% Expected: 2.7% Previous: 2.5% https://www.dailyfx.com/economic-calendar#2020-05-28
  • Heads Up:🇯🇵 Unemployment Rate due at 23:30 GMT (15min) Expected: 2.7% Previous: 2.5% https://www.dailyfx.com/economic-calendar#2020-05-28
  • The US Dollar has fallen substantially this week as the Dollar Basket (DXY) skirts the edge of lower-lows as it forfeits the ground it captured in the March rally. Get your $USDCAD market update from @PeterHanksFX here: https://t.co/JW6ohifDeF https://t.co/twToadCrtr
  • The #Euro is attempting to break above range resistance capping upside progress for nearly two months. Momentum and sentiment studies warn it may fail. Get your $EURUSD market update from @IlyaSpivak here:https://t.co/4tpAAC1ZpV https://t.co/sCZskNhfJ4
  • RT @FxWestwater: ASX 200 & Nikkei 225 Forecast: US-China Tensions Threaten Gains - @DailyFX $NKY #ASX200 $AUDUSD https://t.co/AnpLRQPdS…
  • Update on #Cryptocurrencies #BITCOIN +3.41% #BITCOINCASH +2.15% #ETHEREUM +4.35% #RIPPLE +0.93% #LITECOIN 2.35%
  • Amid escalating China tension, Australian Dollar risk reversals indicate that the bullish bias recently enjoyed by AUD/USD could soon unwind and pressure spot prices back lower. Get your $AUDUSD technical analysis from @RichDvorakFX here: https://t.co/ZAHEwxNrEW https://t.co/gWt401EkQI
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.62% 🇬🇧GBP: 0.50% 🇨🇭CHF: 0.42% 🇦🇺AUD: 0.21% 🇯🇵JPY: 0.09% 🇨🇦CAD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Gn0ub8TS6e
Trade the Trend or Trade the Double Top?

Trade the Trend or Trade the Double Top?

2009-10-16 17:04:00
Richard Krivo, Trading Instructor
Share:

 

Power Course Instructor’s Response:

Yes...a temporary resistance level has formed. That does not necessarily mean, however, that the pair will be changing direction in any permanent fashion. To try to trade "counter trend", is to invite more risk into a trade. The strongest tool that we can use to determine the direction to trade a pair is the Daily trend...all else is secondary.

The higher probability trade will always be in the direction of that Daily trend. The greater likelihood of success will be to look for buying opportunities based on how this pair has been moving. Take a look at the chart below for a visual...

That being said, what you suggest could in fact take place but it a less likely event than the pair continuing higher.

 chart 10 12 09

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.