Just having a look again into which general direction the Dollar and the Euro are potentially headed for in the near future. The markets have been showing signs of taking on more risk recently and there maybe an important swing low being established after an extended period of consolidation in the downtrend on the EURX chart.
The USDX also indicates this move away from the reserve currency into more profitable but riskier trades. For the moment I am staying out of the market until I can see some confirmation of a bigger trend formation. It won’t take much to spook the risk takers in my opinion, but the calender is fairly light on important news this week so maybe we could see a short but continuous period of optimism until the next European bombshell.
The reason this is important to know for me is it will have an effect on my trading plan which for most of the year has been seen to buy dollars, with some exceptions, and follow the uptrend which is the secret to those high probability trades. If this is about to change, even for a short time, I need to be aware otherwise I will be trading against the majority and reducing my chance of success with my strategy considerably.
You can follow George Richards at his blog http://forexdawn2010.blogspot.com
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