- Euro surges through resistance level at 1.106.
- Dollar continues to weaken, adding to the bullish momentun in the Euro.
- Trade ideas on lower time frames.
The Euro has surged through a resistance level formed on February 2nd. The level is 1.106 and should now act as a support moving forward. The Dollar continues to fall and is causing other currencies as well as equities to rally. Take a look at the chart below for recent price action.
At the moment it is very difficult to find bearish setups due to the weakness in the Dollar. Long trades are the way to go and one way of doing this is to drop down to a shorter time frame and look for pullbacks. I would avoid any short signals my system provides me with from the anaylsis I have done on the daily chart.
This is why it can be so beneficial to do long term analysis. When we can be completely objective in markets, it is possible to be completely free from subjective beliefs becuase all we do is trade the best possible setups and do trade what we see.