The euro/ U.S. dollar pair is still holding the median support line as of Tuesday night (EST), but going long on EUR/USD looks like the general long term consensus, according to experts. The support line stems from lows back in March and May, and although it is currently holding, it probably will not do so for too long. The support line does tend to get people believing that the euro is in for a bear market, along with what many experts are predicting for the near future of the U.S. stock market, but the fact that other conditions look to push the euro higher will likely prevent this from happening.
For example, the EUR/USD chart did have a few spots that broke up above highs from June and July. The price has pulled back a bit from this line, but there has been significant testing of recent highs. This indicates that the crowds are reluctant to let a bear market for the euro take over and that a bull market could occur at any time. Last week alone, there were a few times where June and July high points were tested and there’s no indication that this will stop this week or the following one.
The most likely scenario for the very near future—something that 60 second binary options traders should take advantage of—is a broad range. This would most likely mean that the EUR/USD pair hovers somewhere between 1.0850 and 1.1400. Expect oscillation between these numbers over the very short term until some sort of significant breakthrough is established. If 1.1450 is breached, the euro could skyrocket. This is a bit more likely than the euro dropping down below 1.0800, although this cannot be completely ruled out either. The market has been quite unstable and indecisive lately, so extremes are more likely now than in a typical market setting. It does amplify the risk involved, but by decreasing exposure with short term trading, you can trade a situation like this one a little more safely. If you are using a traditional spot Forex broker, be sure to compensate for the spread with any sort of strategy that you employ. This might mean staying for a longer period of time than you’d like, but it’s a must if you want to be profitable. Leverage can help to overcome this difficulty. If you are using binaries to trade, time trades as precisely as possible with a real time charting package, like MetaTrader 4. This will make sure that your margin of error is slightly lower. Over the long term, this can only boost your profit numbers.
As hinted at above, when the price approached those high points, it then reversed course sharply. This is likely to keep happening. Using a short strategy on the euro is helpful. For binary options, these are called put options. Wait until the high point is hit, then enter a strategy where you can profit off of the dropping price of the euro. Either strategy can be profitable when done right, so what you choose is up to what you are most comfortable with. In a market like this, precision is a must though, so be sure to enter and exit trades at only the times you want to. If you are using binaries, only go with the expiry that works for your trading methods. This is one advantage of the Forex market that gets ignored sometimes: you can end a trade at your leisure. Even if you are on the losing side of things, it ends what you have open so you can cut your losses and move on.
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