The EURUSD is making a small consolidation on the daily chart. The previous trend has been a strong and clear upward move, and it’s more likely that the EURUSD will breakout upwards to continue the trend.
EURUSD Daily Chart: 18th October, 2007
Bigger Picture
On the bigger picture, we can see that the EURUSD is nearing the highs on the monthly chart. It’s still a good couple of hundred pips away, but it should prove to be a significant level to take note of once the EURUSD moves in closer.
EURUSD Monthly Chart: 18th October, 2007
The charts will always tell us a story about what traders are thinking, but the ending is never written in stone. So will the EURUSD make a run for the monthly highs?
There’s a good chance it will, but at the same time nothing is guaranteed. If you want to trade, always manage your risks first, and your profits second.