The dollar hit a new four-week low against a basket of major currencies on Wednesday. The dollar index, which tracks the US currency against a basket of six major rivals, fell 0.05 percent to 93.779 after falling up to 93.695 - the lowest level since May 11. Euro rose by 0.06 percent to $ 1.1363.
On Wednesday session EUR/USD was trading in a tight 20 pips wide range. The pair added nearly 40 pips to a closing price of 1.1393. The intraday high was hit at 1.1410 which is a three-week high and the daily low was marked at 1.1354. Currently the pair remains limited by the psychological level at 1.1400, but the outlook is bulish. Possible break will target EUR/USD to 1.1465.
Yesterday EURUSD plunged with a wide range, making a bearish engulfing pattern and closed near the low of the day, in addition managed to close below the previous day low, suggesting a strong bearish momentum.
The pair is trading above the 10, 50 and 200-day moving averages that are acting as dynamic supports.
The key levels to watch are: A daily resistance at 1.1556, other daily resistance at 1.1460, the 50-day moving average at 1.1300 (support), the 10-day moving average at 1.1276 and a daily support at 1.1237.
Silk posted: I dont no how to set stop loss, please help me
There is one very simple rule in trading... 'if in doubt - get out!'
Another rule is... 'never trade without a stop'. Another rule is... 'never move your stop farther from the entry price' Another rule is... 'always calculate your lot size according to the risk you're willing to take' as opposed to just guessing or random selecting. Another rule is... 'never let fear or greed take control of your trading actions'
Most amateur traders are controlled by these emotions - hardly any of them will admit it. It's the macho/ego that they are controlled by.
FOLLOW THESE SIMPLE RULES and your chances to be successful in the trading business are much greater.
If you don't know how to select SL and how to calculate your lot size (extremely important), then read some of my old posts where some of it is explained.
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