Today is Sat, November 18, 2017 7:29:54 GMT
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Currencies EUR USD News Euro (EUR) Close To A Double-Bottom?

There is a fine line between trying to pick bottoms and attempting to find support in a down-trending market.  Bottom-picking is generally a “no-no”, but using support to potentially find a market reversal is a time tested technique used by the pros.

However, the devil is in the details and the techniques used can be the difference between sound trading strategy and poor judgement.

As the Euro approaches 1.265 vs. USD, there is the possibility that the previous swing-low put in  days earlier can hold.  However, it usually best to let price test that level first, and to buy it on the way back up if that level appears to hold.  What we usually see though is as that price level is tested, momentum can increase dramatically as the stops are run on the longs who are using that level as support.

So it is important to see what type of candle action occurs before deciding on whether or not this type of counter-trend trade is right for you, as sometimes these trades can lead to a market bottom.

We all know the story about the Euro debt crisis and that it is generally a market negative, but there is always a bottom somewhere in the forex market– even if its only temporary.  These set-ups can sometimes provide for some of the most rewarding, low-risk trades!