Euro vs Dollar - Daily Candle Chart 27th February 2009
At the moment I feel a little bit like the lollipop lady on the school crossing, waiting for the traffic to stop before I can let you cross the road! – my advice remains the same as for the last few weeks – STAY OUT! The chart above really tells it’s own story and needs little explanation from me, as the long sideways consolidation continues unabated. If, and until, we see a sustained break, above or below, then you cannot trade this pair with any degree of confidence on a daily basis, using a simply buy or sell strategy – you will get cut to ribbons in the daily whipsaw of prices. There are of course ways you can trade, using both options in a straddle strategy, and no touch trades using fixed odds. Both of these are perfectly valid trading strategies and are fully explained on the various sites. Unfortunately many traders ( particularly the smaller retail traders ) only ever use the simply buy and sell approach, and never learn how to use currency options, or fixed odds in order to trade markets that are consolidating, or simply range trading, preferring to use simple buy and sell orders which are then stopped out almost immediately. The euro dollar is a classic example of where the smaller trader will lose and the professional larger traders make money, as they use a much wider variety of trading tools and techniques, and I would urge you to do the same. Buy or sell orders are very simple and we call all execute them with ease, and for much of the time they are a good choice, but they are just that – very simple. To trade in a market as we are seeing at the moment with the euro vs dollar, then your trading toolkit will need to be much more advanced, so please take the time ( while you are waiting to trade ) to learn about other techniques, which may be complex but are well worth the time and effort and will pay dividends ( sorry for the pun) in the longer term as they will open up opportunities in difficult markets and difficult trading conditions as we are seeing at the moment. I have covered the fundamental news for you over on the euro to dollar site.
The short term, medium term and long term outlook is sideways!!
