Euro Gaining Steam Against USD on Forex

 

The recent sale of Spanish debt was greeted with a good deal of enthusiasm and went a lot better than many expected. China came through and made a good deal of purchases sending the Euro high, and it also had an added bonus of creating good sentiment within Asian stock markets. This has caused many traders to re-evaluate their short positions on Forex, and indeed there has been a moderate rise in value from those abandoning their short sales. The EU is by no means out of the woods yet, but in time there should be more of a recovery as they pursue more vigorous austerity measures. There is just no end in sight for the level of debt the EU could find itself in if there is not a cut in the spending they have been doing.

Traders should not take a position in one direction or the other against the Euro just yet though, there is still a lot of uncertainty.

Scalpers should be able to make some money here, but long-term traders could definitely find themselves losing a lot of money. Take the time to figure out exactly what you are looking for before moving forward with a position, otherwise things could change a whole lot for sure. The losses that could be suffered due to the huge moves that are in store could be enormous if a trader is not very careful. Precise stop loss and take profit numbers should be employed here, trailing stops would also be of great assistance if you are that type of trader.

Being able to take advantage of the Euro's instability could seem especially risky to some who are not acquainted with how to take advantage of this type of situation, but do not be scared if you have the right trading system in place.

The amount of movement that will come in the days ahead should be a couple hundred pips or more, and if there is the right order in place then a trader could make an awful lot of money. Just be sure to have something tested that will enable a trader to make the right decisions, otherwise there is no real profit to be made and only loss to be had. There can be no doubt with regard to how you trade before you place a large trade on the moves that are coming to foreign exchange rates.