Historically, this pair has had a seasonal tendency to rise from June 28 to July 21. You can see on the charts that it has basically done so this year as well although you can also see how difficult this can be to trade. For example, if you'd bought at the open of June 28 at 1.5067 you'd have had to be able to stand the drawdown to 1.4874 on July 1. Then it moved basically sideways from July 2 to July 8. Finally, after another drop to 1.4949 on July 12th it started a short uptrend that has brought it to a high of 1.5472. So could you have made money using this seasonal tendency. Yes, but only as another piece of evidence. You'd still have had to practice good money management. In any case, July 21 is Wednesday.
Cable is faltering a bit this morning. 1.5230 , 1.5197 and 1.5141 are support levels so momentum behavior at those prices will be key to a decision of whether to buy.
Here’s the weekly chart:
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.
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