One of the currency pair in trading forex, euro usd, is in a mjor downtrend since November and is now reaching a major resistance level at 1.38. If you have short sold euro to usd, prepare to cover, as a retracement is expected the following month after a quick drop in the euro exchange rate. The major forex pair has been in a downtrend from 1.51 during the last 2 months and your usd accounts are now worth 15% more! However, I won't be converting my dollars to euros just yet, since in the long term I predict a decline of the euro rate even below 1.30.

If you had been trading Forex the last months you would have noticed the EUR/USD uptrend that ended at 1.50 and has been falling ever since. Euro is trading at 1.40 US dollars today and the euro currency seems to lose value quickly. Could it be due to the bad economy of Greece which is so popular lately in the news worldwide? Surely the new 5 year bond didn’t actually help. At least I won’t be risking my money into the Greek debt and bankruptcy. Just another fish not going for the bait.

Most FOREX traders focus on the most popular currency pair which is EUR/USD. Lately I don't trade FOREX that much but I always keep the Windows currency gadget on my computer's desktop. The last days I noticed EUR/USD to be eager to reach out the 1.50 mark so when the gadget read 1.498 I immediately fired up my FOREX broker, Oanda. I went long on the pair as soon as it broke the resistance level at 1.5000 and have been making some easy money, since I have not traded out yet. I'll be exiting the market when a major bullish reversal pattern appears on the daily or hourly EUR/USD chart.

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?

Trading online the foreign exchange is a lot cheaper than intraday stock trading regarding commission. FOREX brokers apply spreads to the currency pair exchange prices while stock brokers apply commission on each trading order. However if you do the math, it is much more profitable to be trading FOREX than stocks intraday. Add the fact your forex account is allowed 1:100 leverage and you can fund your account with credit cards or Paypal, and I guess we have a winner. Anyone disagree?