Retail forex traders like to do one thing more than anything else: They like to sell things that are going up and buy things that are going down.
In a range bound market, that’s a perfectly good strategy, so long as you employ good money management techniques (like making sure your winners are larger than your losers). In a trending market, it is suicide.
EUR/USD is has broken a slew of important resistance levels today and looks almost assured of closing above its downtrend from late last fall. On any technical basis, it is difficult to make the case for a short EUR/USD position at present. Look for opportunities to buy dips or stay square. Don’t get caught by a tide change and be left high and dry…
