Euro is trending upwards the last month and is now challenging the previous 3-month high at 1.3025. However a major resistance level is to be verified at 1.3250, which was the resistance level when EUR/USD was dropping fast in the first months of 2010. Usually a resistance level becomes a support level when overcome, and 1.3250 is a support level if we are accepting that the currency pair is still in a long term downtrend. However there are quite a few signals that EUR/USD downtrend has reached rock bottom at 1.19 in June and considering the Euro's last month uptrend, we'd better expect an imminent high above 1.3025 and a real challenge at 1.3250. Should we expect a retracement there and an uptrend resume, or would EUR/USD fall back to 1.20 level?

EUR/USD has gained more than 1,000 pips since June and technical analysis suggest we might see a short term downtrend this week. As I am going to trade forex this week, I will be looking for sell signals mainly and I will always keep an eye on different timescale forex charts, so that I won't get surprised. I believe a bounce at 1.3250 is more than possible and a retracement may evolve afterwards. However I do think we have seen the lowest price of the currency pair and all that remains is to find out whether it will fully reverse in a strong uptrend or trade sideways.

EUR/USD has entered a downtrend since late 2009 but perhaps June 2010 was the month that hit its lowest low. A couple of strong reversal signals indicate a probable ending of the downtrend and all that is left to find out is whether the currency pair will make a full reversal and start an uptrend, or move in a sideways channel in the following weeks. For the time shorting seems riskier than buying euro for the first time this year. On the other hand, pessimistic investors for Euro might think that EUR/USD has retraced to the long term moving average only to bounce back and continue its downtrend.

GBP/USD is one of the currency pair in Forex trading. If you think the British pound will do better against the American dollar you buy, if you favor USD you sell. Yesterday GBP did exceptionally well in just one minute as I was trading the currency pair together with USD/JPY and EUR/USD. The pair climbed 500 pips in a matter of seconds and I had just got long, which means I had bought, right from the beginning of the movement.

It is actually a 50 pips movement! I was so thrilled that I added up a zero! Sorry for that!

This is my trading graphs' arrangement regarding a currency pair. Since I'm new to the Interactive Brokers interface, I haven't tried trading any stocks yet and I focus on Forex trading until I get accustomed to the software. In the trading screen there are 4 graphs, 1 minute, 5 minute, 30 minute and 1 hour charts. All of them include the latest 100 candlestick bars at each scale. MACD is also plotted, which is a popular indicator in technical analysis.