EURSEK - Will it keep long term bullish trend or ... ?
... will it trade in a wider range top? It is hard to tell now.
In fact it is very hard to be bullish on EUR, and frankly speaking SEK has not strengthen any against Euro so far this year. I still believe later this year this can be one of the biggest and best reversal trades. But do not forget, you can not predict anything. Price goes where it wants to go. You can expect a reversal, but I think this is the biggest common mistake among traders (both private and professional ones), that quite some times they trade assumptions, early expectations and biases based on these. A recersal takes place, when indicators justify and confirm it really took place. That's all. And for this reason (besides several other reasons too) Ichimoku is a very useful system.
For now you can trade EURSEK in two ways:
A) You sell it ard this level (in 9,11 - 9,14 range), betting it is rather at range top. In this case you can put a quite tight stop on the short position at 9,1630. Target for the trade can be 9,04 - 9,06. Since the basic trend is still bullish, it is recommended to trade it only with 0,5 trade unit size.
B) If you like longer term trades and try to go with the trend, then wait for the pull back, and go long closer to 9,00 handle. In this case I give you one advise! Do not place a limit buy order in advance, as you can burn your hands if you run into some sharp moves like the one that happened to EURNOK last week. Always place a price alert first touch above the level where you would start looking at long entry. Then if you have enough additional info, you can put on the position with a limit buy or with a stop buy entry. This way you can not run into a situation, when suddenly price clears all supports at once and prints that reversal, which I was writing above.
In fact it is very hard to be bullish on EUR, and frankly speaking SEK has not strengthen any against Euro so far this year. I still believe later this year this can be one of the biggest and best reversal trades. But do not forget, you can not predict anything. Price goes where it wants to go. You can expect a reversal, but I think this is the biggest common mistake among traders (both private and professional ones), that quite some times they trade assumptions, early expectations and biases based on these. A recersal takes place, when indicators justify and confirm it really took place. That's all. And for this reason (besides several other reasons too) Ichimoku is a very useful system.
For now you can trade EURSEK in two ways:
A) You sell it ard this level (in 9,11 - 9,14 range), betting it is rather at range top. In this case you can put a quite tight stop on the short position at 9,1630. Target for the trade can be 9,04 - 9,06. Since the basic trend is still bullish, it is recommended to trade it only with 0,5 trade unit size.
B) If you like longer term trades and try to go with the trend, then wait for the pull back, and go long closer to 9,00 handle. In this case I give you one advise! Do not place a limit buy order in advance, as you can burn your hands if you run into some sharp moves like the one that happened to EURNOK last week. Always place a price alert first touch above the level where you would start looking at long entry. Then if you have enough additional info, you can put on the position with a limit buy or with a stop buy entry. This way you can not run into a situation, when suddenly price clears all supports at once and prints that reversal, which I was writing above.
