Personally….I rarely look at this pair as any, “ANY indication” of larger market moves or global appetite for risk as – these are they two most widely held reserve type currencies on the planet, and their comparable movement does nothing for me / my analysis or for the most part….my account.
The general “forex media / forex industry” promotes the trading of this pair like there’s no tomorrow, and new traders tend to love it. Don’t ask me why. Well ok ask me why…..cuz they don’t know anything about forex before they start trading it!
So if the coming move in forex markets “in general” can be at all illustrated for you “new comers” via this pair – take a look at the weekly chart of EUR/USD:
See that big red candle back near the first part of October? The one with the tall “wick” on it? High of 1.1305? Then looking back…..see the confluence area surrounding this price level “rough and nasty”?
Now check Gold:
These are the kinds of “large time frame” areas of support and resistance where you can start considering some “serious” trading . Not getting bogged down in the short-term flutters, if you can just manage to keep your friggin hands off the mouse for a day er two!
Not much more to be said here. You know what I’m getting at as this trade is getting very close.
It’s the “knowing ahead of time” and the “recognition” that these levels and correlations exist that will elevate your short term trading as you should “already know” the levels to watch for reversal. THEN pop down to your 1H charts and plot your entry.
Eur set to top. Gold set to top. USD set to bottom for a solid “medium term trade” so……start eyeing these charts for their reversal on the 1H at the bare minimum before even considering entry.
You owe me big time.