Trading the EURUSD pair is a bit like riding a roller coaster; you must be prepared for some significant rises and dips. The dollar weakness pushed the EURUSD to a two year high, north of 120. Then the Draghi effect hit with a vengeance and pushed the pair down to a value below 115.

It bounced there, but the dark cloud of Catalonia declaring independence from Spain moved into the picture.

In such markets, a trader without a crystal ball is in trouble.Unfortunately, that includes us. We have no reliable crystal ball, so we are sitting on the sidelines and watching the action. I would love to have been short the EURUSD pair this week. And I was tempted to jump in as it approached my support lines at 115.722. But its Friday and only God knows what is going to happen over the weekend.

I am a technical trader, but events like we’ve mentioned here cause big moves in FOREX markets.

So, we sit and watch and wait. Patience has never been my long suit, so this kind of market is tough on me. But being on the wrong side of a trade is such a market can put a big dent in your account balance quickly.

I love volatility, but it is a bit like sex – just the right amount is perfect – but too much or too little is just not desirable.

 

 

 

 

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