Doing what it is supposed to be doing
Below is a pop quiz on trading the ACT (Attacking Currency Trends) way.
The EURUSD breaks the 200 hour MA (green line in the chart below) and races higher. The price moves to the next key target against a topside trend line and stalls. Where should the price find support?
a. What's support? I am a fundamental trader
b. "EURUSD" what word is that. Get spell check buddy.
c. Against the 200 hour MA or green line in the chart
CORRECT Answer is "C".
Technically, if traders can define and limit risk against a level that many traders see and follow, they will. Besides, it also was near the 50% midpoint of the trend move higher from the NY session low.
Did you pass the test?
Extra credit:
2. If the support holds at the 200 hour MA, where is the next upside targets for the pair. Explain.
