Today I want to write a few thoughts on my expectations for eur/usd pair. The pair has been in a slow trend up since the 10th of January of the year. Eur/usd closed near the important resistance level on Friday. As you may understand we can expect either a reversal at the point or a breakout upwards and a continuation of the uptrend. The pair has been in a pretty narrow range for about two weeks (since 22nd of March). The upper part of the range is 1.4250, the lower part of the range is 1.4020.
There is a general rule that Mondays are reversal days, especially if you have a large move on Friday. However, we have the beginning of a month and a fresh move up can also be in store for us as well. So, I am in two minds about the pair. If I see a reversal pattern I might take a reversal trade down in the pair during European session on Monday. If there is a breakout up, I will wait for some sort of reversal down and then I will place a buy stop order above the most recent high if it is going to be formed (if the break happens). See you tomorrow.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.