Psychological levels are the round figures with 3 zeros. So today, 3 out of the 4 pairs I monitor are hovering at psychological levels. AUD/USD 0.77000,EUR/GBP 0.88000, EUR/USD 1.23300 - note that EUR/USD broke the psychological level at 1.23000 and closed above it. I saw that last night and was tempted to go in and follow the established trend, but stuck to my trading rule of AUD/USD only - would've made another 4% in fact. Oh wells.
So look out for the resulting trend, of whether it rebounds or breaks through (I'd say about 30 pips is safe enough) and trade with the trend. Don't get paralyzed by stop hunts! But most importantly, trade safe.
Yours,
X
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