EUR/USD has gained more than 1,000 pips since June and technical analysis suggest we might see a short term downtrend this week. As I am going to trade forex this week, I will be looking for sell signals mainly and I will always keep an eye on different timescale forex charts, so that I won’t get surprised. I believe a bounce at 1.3250 is more than possible and a retracement may evolve afterwards. However I do think we have seen the lowest price of the currency pair and all that remains is to find out whether it will fully reverse in a strong uptrend or trade sideways.
Forex trading is all about entering and exiting at the right time. I personally trade forex in 1-min forex charts and looking at the corresponding 30-min charts. Many forex traders prefer 5-min charts due to significant noise in faster charts but in my case I can pinpoint easier the retracement levels and any other indicator of technical analysis I use in those charts. In the end, what matters the most is what makes you trade forex more comfortably. There is no better investment advice than than this!
