Archives for March 2014

CHF

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The CHF set up nicely for a short after the US economic news – which created some bearish USD sentiment.  After 3 lower highs which began with a double top, we see a familiar pattern of the breakout shorts getting wash and rinsed.  As price closes below the Asian low… taking out the preceding 3 hours of range, we enter short with a Reward to Risk of 4:1 to our Target 2.

Price moves quickly down to our Target 2 and also completes a very familiar pattern.

Trading has been easier this week.

Good luck with your trading!  Enjoy your weekend!

Back Tuesday if we find a trade.

JPY

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Some nice setups in the majors this session.  The JPY had a gorgeous setup after the US News.

Nimble traders had lots to choose from.
Yesterday, I was commenting to a trader that it had been difficult to find a trade in the JPY of late – despite the Ukraine conflict.  A beautiful setup followed today.  A short is taken and we ride it down to our Target 2 before exiting with a Reward to Risk of greater than 3:1.  The Stop loss was at 102.81 (forgot to show) just above the UK session high.  Slightly above Target 2 is another technical level, so we exit according to plan while being very conservative.  Price continued down without us, but with 2 technical levels reached, we chose not to be greedy.
Looking at the Daily chart we see that the 101.50 then 101.00 area will be very revealing of whether buyers enter.
A Big Caution with the EUR at the 140.00 level is also warranted.  Be very careful trading at this level.
Good luck with your trading!
Back tomorrow if we find a trade.
MIchael 

AUD

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The AUD bounced higher with the US traders today.  Lots of talk about China’s slowing growth among institutional traders today…which one would think would negatively impact the AUD but experience has taught us to read the technicals and take the fundamentals in stride.

This is a very nice pattern with a higher low and continuation to the Asian session high.  At the first sign of rejection above the Asian session high and a bearish candle following, we exit the trade.

Keep in mind that the North American traders are on DST this week and this one hour shift will have North American traders starting an hour earlier than last week until the end of the month when the UK and Europe move their clocks ahead.

Back tomorrow if we find a trade.  A technical glitch yesterday prevented us from posting.

Good luck with your trading!

GBP

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GBP climbs tentatively higher.  After the news,we patiently wait for an enticing setup.  With a 13 pip stop loss and a potential 56 pip reward, we enter long.  Our first major hurdle is yesterday’s high.  Price is not able to close above it at first and more importantly a wicky candle forms – which is a sign of sellers entering. We place the profit stop just under yesterday’s high and the next candle closes the trade.

Price subsequently moves to our Target 2… in a 3 Drives pattern… without us.

Lots of economic news on Thursday.  Geopolitical issues have abated somewhat today.  If things heat up again, keep an eye on the CHF pairs.

Back tomorrow if we find a trade.  Keep stops tight as the market is potentially very volatile all week.

Good luck with your trading!

EUR

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The EUR remains off its high from last week.  Very subdued trading during the first half of the UK session. The US traders pushed the EUR higher then reversed it with a close back within the Asian session level.  An entry is found with an 18 pips stop loss.  Price moves down testing session lows before moving down further.  As price bounces off yesterday’s low, the trade is closed, just before the UK session ends.

Despite the geo-political climate trading overall was subdued in the majors.

Good luck with your trading!  Keep your stops tight as extreme volatility could occur in a blink with the Ukraine situation.

Back tomorrow if we find a trade.