I Wish I Knew How to Trade Currencies...Can you help me out
I really like the Euro/USD short at these levels plus the spike that formed at another failed retest of the highs. Today looks like a retest of the neck line and Monday means straight downhill. I dont know anything about trading Forex pairs just the patterns and price action looks like a good short.
What doesn't look good about this trade are 2 things that the chart doesn't reflect:
1. news on the dollar has been strong (ex: booming economy, raising interest rates, super low unemployment)
2. news on the euro has been weak (ex: brexit, attacks, immigration)
Yet the pair is in an uptrend testing highs when the news is saying it should be going lower. Some people believe when price ignores bad new the bullish trend is strong. Others look for it as an opportunity to load up.
But since I know nothing about how to trade this I could be misinterpreting the pair and it could actually be doing exactly what it should be?
Anyway all your help and advice is welcome and if you could answer this for me: how much capital is needed to enter into the trade that is laid out above and how did you calculate this?
What doesn't look good about this trade are 2 things that the chart doesn't reflect:
1. news on the dollar has been strong (ex: booming economy, raising interest rates, super low unemployment)
2. news on the euro has been weak (ex: brexit, attacks, immigration)
Yet the pair is in an uptrend testing highs when the news is saying it should be going lower. Some people believe when price ignores bad new the bullish trend is strong. Others look for it as an opportunity to load up.
But since I know nothing about how to trade this I could be misinterpreting the pair and it could actually be doing exactly what it should be?
Anyway all your help and advice is welcome and if you could answer this for me: how much capital is needed to enter into the trade that is laid out above and how did you calculate this?