Forex Trading Strategy Tips 10/24/2010
As we approach the end of October, last Friday the major currency pairs closed in very critical levels. Below you can find my personal 4 HR charts for a couple different currency pairs. I DO NOT trade off Technical Analysis, however I apply it to specific Scalping Strategies allowing my self to increase my potential profit, and use the same amount of risk by simply closing 1 position for 7-15 pips (normal scalping goal per trade) and hold 1 position with a stop at Break/Even for further gains.
EUR/USD closed under 1.4000 after making a classic Head & Shoulders pattern on the 4-HR chart. If we can stay below 1.4020 there is good potential we could see some retracements down to the 3 potential support levels at 3600, 3300 & 3100.
GBP/USD found an enormous amount of resistance up at the 6000 level where it double topped. After getting rejected when it did break and ran to 6100, this currency is now setting up to go lower if we can break below 5600. Longer term levels of support are at 5200, 5000 & 4780.