Experience over the years has taught me to enter a new year cautiously and to be patient. There will be some fantastic trades this year and some setups will be very high probability and obvious, while others will be less so… but high probability just the same. Leave the other potential trade setups alone and focus on being selective and disciplined.
On Tuesday after the EURUSD failed to retest 1.1200 and made three lower highs, a short was taken after the U.S. economic news, risking 9 pips for a potential 22 pips to our daily target at 1.1145.
With the market recovering from holiday sluggishness, our targets may be a little conservative this week until the more normal ranges reappear.
Price moved lower with a stronger USD and our trade was closed at our daily target for a modest return.
On Wednesday, the EURUSD continued to make lower highs and another short was taken risking 7 pips for a potential 25 pips to our daily target at 1.1113. As price failed to close above its Asian low and was also rejected at a very significant level from the daily chart, an entry short was taken.
Price moved lower and our trade was closed at our daily target as the U.S. session got underway.
The EURUSD is currently testing 1.1200 to the topside and 1.1100 to the downside. With continued USD strength, we may see the 1.1100 figure give way for a test of 1.1000 and the October 2019 low around 1.0900.
Although it’s fashionable to make predictions as we enter a new year and new decade, it’s prudent to pay attention to the charts for direction… not pundits.
I recommend starting the new year with a trading plan for the next 90 days and keep very detailed record of your trades by documenting them with screen shots. If you don’t already do so…take a screen shot of both your entry and your exit, along with your reasons for entering and exiting each trade. A library of your trades – both successful and other will go a long way for you understanding your strengths and weaknesses as a trader. Always learn from both outcomes.
Good luck with your trading and I wish you the best year ever.
