EUR/USD Continues Trading in Ascending Channel

After a short period of consolidation, the EUR/USD looks to continue trending higher and continues to trade within a tight upward channel.

The pair has reacted rather nicely to both trendlines in the channel and offers several trade opportunities to forex traders. On the long side entering in to a new position or adding an addition position when the pair approaches the lower trendline would be the most prudent approach.

On the short side, a trader could look for a minor retracement due to resistance from the upper trendline. However due to the overall trend of the pair, traders might want to refrain from entering in to a short position due to the overall bullish trend. Additionally although the pair has reacted in a very predictable manner in regards to the trendlines, traders are urged to use additional forms of trend confirmation apply prudent risk and money management techniques.

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