The current situation is pretty funny after all. Day after day we have different news about situation in Cyprus. Of course right after that we have a reaction – the strong rise or fall on forex pairs. Not so easy situation to trade. What is the best plan? If you are not feeling sure, then wait and stop trading or simply open smaller positions. After all, it is all about making money and survive.
What with eur/usd? I am still looking at Fibonacci retracement lines. Simply because they are a resistance for this pair. Ok, Fibo lines and 200 MA. There are few swings which you can choose to draw Fib retracements, but I am looking at this one:
eurusd 4hr chart
After move to 78% retracement line there was a come back to the 0% line. We may see here a double bottom and stronger bounce up or break below. Size and position type depends now strongly from time frame you are trading. On lower time frame you will be more flexible, on higher you should be careful because it looks like a kind of situation where there may be a surprise ;).
Stocks are rising, but resistance at 1560 on S&P500 is still ahead:
sp500 daily chart
We do not now how long this situation will take. One thing is sure – remember to protect your capital, because you need it to keep going when all this crisis with Cyprus will be over.
