The year 2012 is now gone and 2013 is in full swing and with this we find it is a good time to take a look at the longer term trends on the daily charts of the various pairs. Normally, I would not spend a lot of time looking at this time period but at the beginning of a new year I like to see where the “big” momentum is pushing the pairs I am trading. So with that today I want to look at the 6 major currency pairs and where this momentum is heading. This will not only give us a long term perspective of what might happen this upcoming year, but it can also give us insight into how we might approach the shorter term charts.
EURUSD
In the above chart of the EURUSD you can see that the overall movement has been to the upside while currently we are sitting near the area of support. This situation is ideal for taking a long trade as the trend is helping the price move up and the buying pressure at support is favorable for the price moving higher. In the next few weeks consider this as a bullish alignment for trading.
GBPUSD
The GBPUSD has a very similar pattern to the EURUSD but just a little bit wider. This will show as a bit more volatility so make sure you use appropriate stops and target to take these wider movements into consideration. This is also in a bullish alignment so look for opportunities to go long on a bounce up off of support. I’ll have more long term trades for you soon, so stay tuned.