Long term Forex trading is all about entering the market when the trading trend is established. Regarding EUR/USD the uptrend started in mid-April and continues to drive the currency pair to even higher highs. This week the Euro bounced off a previous resistance level, verifying at the same time the support trend line. All trading signals indicate that EUR/USD is expected to climb above 1.4338, which was the latest resistance level of the uptrend. However, since the uptrend is now 2 months old, is it too late to buy the Euro? Was 1.4338 really the highest high the EUR/USD would reach retracing to lower prices?

Euro / USD Daily Chart

If you are on the other hand pessimistic about the Euro, you should be waiting for a EUR/USD high lower than 1.4300 to indicate a possible retracement. Again though there are more trading indicators that the Eur/Usd is in an uptrend rather than in a retracement phase. There is also a possibility that the Euro will enter a trading channel between 1.40 and 1.43 but at the moment there is no signal indicating such a development.

Euro / USD 5-min Chart

Today Euro gained 200 pips against the US dollar and looking at that 5-min graph a forex trader must have got a good excuse to enter a selling order at this point!