Although the pair broke the support trendline that marked a succession of higher lows on the 4 hour chart we can still expect the 1.0900 area to provide enough support for a new move higher towards the 1.10 level. This is the consolidation range some of us of thinking of after the USD rally we had in the previous days, playing the range with carefull thought stops should provide a decent risk:raward ratio for both longs and shorts until we see some sort of momentum building up.
Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of
leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider
your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some
or all of your initial investment and therefore should not invest money that you cannot afford to lose. You should be aware of
all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
