EUR/USD Huge climb 500 pips in a day!

The EUR/USD pair had found support at 1.24 since October 2008. During December it tested the resistance level found at 1.46 only to quickly drop again at 1.24. Since the start of March began a small uptrend and on 18th of March it gained about 500 pips in just one day! A more impressive move was climbing from 1.31 to 1.34 in just a matter of an hour! If a forex trader was trading with a $1,000 bankroll using a leverage of 1:100, he would have earned himself $4,000 in one hour! Of course if he would have predicted a fall, he would have done his bankroll!

Having installed Windows Vista in my desktop computer and using the Windows sidebar, the currency converter gadget is always visible in the right column of my screen. Upon waking up, I always get a glimpse of the current conversion rate in order to decide whether it is a good time to withdraw some of my online money to my bank account. Most of my bankroll nowadays along with the blog's earnings are in US dollars and they convert in Euros upon transferring into the bank. So another precaution I usually take is to make the most of my dollars, and that is converting them into Euros at the most appropriate time.

Imagine my surprise when I left the EUR/USD pair at 1.29 on Tuesday only to find it at 1.35 on Wednesday! That was surely a big opportunity for some traders to make a lot of money while others may have put their bankroll into high risks. Since a 50 pip win is considered very successful trading, a 400 pip win would be simply outstanding. If I had traded that move, I would have quadrupled my forex bankroll! Well, if only we all knew that was going to happen, right?

Now, the real question that lies ahead is where will EUR/USD find resistance? Considering the chart 1.3750 is surely a resistance level at first glance but if we look at the daily chart I guess a much more acceptable resistance level is 1.46. In my opinion the euro will retrace a little and then continue its uptrend. When that retracement occurs and the uptrend resumes, I may place a small bet on EUR/USD.

Trading - FOREX Trading