This is a Back-to-Basics video demonstrating the importance of looking at long term charts. This is a monthly chart of EUR/USD, which means every bar contains one month of trading data.
Even for intraday traders it is important to know where the 'big' levels are and where the long-term trend for a market is.
First level of note is the 61.8% retracement at .9620 of the entire move from 1985 to 2008, the market bounced from this zone in September 2022.
The second thing I note is the importance of leaving previous trendlines on the chart. The one on here is the old uptrend drawn from 2000, connecting the 2017 and 2020 lows. This now comes in at 1.1025 and acted as superb resistance for the market recently. It has provoked quite an emphatic failure and it does suggest that the longer term trend for EUR/USD remains firmly down (bearish).
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
Even for intraday traders it is important to know where the 'big' levels are and where the long-term trend for a market is.
First level of note is the 61.8% retracement at .9620 of the entire move from 1985 to 2008, the market bounced from this zone in September 2022.
The second thing I note is the importance of leaving previous trendlines on the chart. The one on here is the old uptrend drawn from 2000, connecting the 2017 and 2020 lows. This now comes in at 1.1025 and acted as superb resistance for the market recently. It has provoked quite an emphatic failure and it does suggest that the longer term trend for EUR/USD remains firmly down (bearish).
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
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