As we predicted on January 22, the EURO took a great hit. In just two days the EURUSD price dropped by more than 5000 points and it is likely that we will see 1.10…. and 1.00…. levels soon.
Though, the currency market is unpredictable most of the time, the combination of the ECB announcement about the QE program and the outcome of the Greece election made the market perfectly predictable for a short period of time.
The QE program which is in fact nothing else than an enormous "we print fresh EUROS until the press runs hot" program and Syriza election triumph will have further influence on the EURO. In fact, we are almost certain that the EURO will continue to weaken against other major currency pairs (EURGBP, EURJPY, EURAUD).
Because of all the fresh and cheap money from the ECB, indexes such as the DAX will see new highs while the EURO itself will lose ground against the USD and of course the GBP. Buying DAX CFDs or futures whenever the price becomes oversold and selling EUROs when the price becomes overbought, are two safe trade recommendations. But still, keep in mind that there are no "sure bets". Therefore, make sure you pick your entries wisely, keep your risk under control and be ready to hold those trades for weeks or even months.
If you need help with the entries, check out ProFx 3.0. It provides you with precise entry signals and is very easy to use.
PowerFlow users who followed our advice and halted trading can continue trading with the Expert Advisor. As it turned out, it was actually not required to halt trading. However, "playing it safe" was still the right decision.
ProFx users, switch back to regular risk per trade and have the opportunity to make some nice extra profit by placing some medium and long term trades.
If you don't own a PowerFlow forex EA or ProFx 3.0 license, you can use the above trade recommendation as guide and pick the entries according to your own criteria. Or, you can take advantage of actual promotion and order your personal license today.
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For more information about how they can help you to make high and constant currency trading profits, visit our website.
Alexander – Forex21 Team
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