How to Trade EUR/USD The Right Way

Hello everyone, today we will overlook EUR/USD in our review and determine the most optimal strategy.

We have not yet considered it, but we know that this is one of the most popular and traded instruments in the world. Hence, we can conclude that the value of this tool for the global economy is very large. So private funds and corporations have to spend huge amounts of money to analyze and build positions.

We can get the same result free of charge because we already have great examples in the field of analysis and investment. So it will be useful for our portfolios and help them to grow.

The overall situation for the pair is something uncertain, as the dollar has been strengthening for a long time, which created a falling trend for the currency pair. However, the trend has dragged on, and the prospects for further strengthening of the dollar are melting, new drivers have not yet been created, and macroeconomics is already making us think.

Picture 1. The price chart of EUR/USD from 01/01/2018 to 09/12/2018.

The chart on the Picture 1 shows that the bearish trend is already in question because for quite a long time the price chart is in a narrow corridor.

It also indicates that a trend of the instrument will be clear soon.

Let's see how the situation with the positions of major players looks like.

For the last month, the situation began to change towards increasing the positions on the Euro, which indicates that the index of major players decreased from 100% to 86% of the position for the month.

Picture 2. Price chart and graph of the index of large users from 12/08/2018 to 12/09/2018.

According to the schedule on the Picture 2, it is clear that when the value of the index of the position of large players increases, the EUR/USD price chart acquires a bearish trend.

Recent changes in positions indicate that the mood of major players is positive in relation to the value of EUR/USD.

Recommendations are as follows: to increase the ratio of long trades in the trading plan.