Forex Tips

The AUD jumped up after the positive economic releases during the Asian session.   This is a favourite setup for me – more often than not.  I look for the pair to begin to fade after the UK traders come on.  A distinctive pattern is seen and although it would be nice if the pair ran all the way down to the Asian low, price bounced just above yesterday’s high and hit our profit stop.

Note the wicks on the bottom of  candles indicating buyers entering and a warning sign to tighten the profit stop and keep tightening it, as the market is hinting reversal.

Good luck with your trading!

I was out of town yesterday, but look forward to finding at least one more trade tomorrow to end the week.

Small move in AUD after the US news.  The EUR, CHF, AUD and NZD traded sideways awaiting the US ADP Non-Farm Employment Change.  I liked the AUD reversal that followed and a short is taken.  With a 15 pips stop loss our Reward to Risk was 3:1 to our Target 2.

Price retested the session high once more before moving down, but lost its momentum near yesterday’s lows.

Lots of economic news releases over the next 24 hours to come.

Good luck with your trading!

Back tomorrow if we find a trade – otherwise back Tuesday.

The GBP sets up for a short.  After the initial news reaction, price was unable to get back above the Asian session low.  A bearish engulfing candle followed and we find an entry with a 10 pip stop loss and a potential 50 pips to our Target 2.  As price moves slowly down we lock in profits in advance of the US Open.  We are eventually closed at  our profit stop by a stop and reverse early into the US session.

It’s a busy news week.  Good luck with your trading!

Back tomorrow if we find a trade.

At the UK open the EUR plummeted and the CHF shot up.   Between the 2 charts the CHF was clearer and the stop loss was almost half of the EUR.  With this first 15 minute candle the CHF went through our multi-pivot line and tagged our Daily projected high, then began to fade as sellers entered.  With a stop loss above the session high structure – costing 10 pips and 41 pips to our projected Target 2, we enter with a 4:1 Reward to Risk.

Price moves down nicely stopping just above the Asian high and begins to retrace upward but not convincingly.  We move the stop loss down near our entry and a double top gives way and price retests the Asian high.  We move the profit stop down and give a bit of breathing room just above the Asian high. Price forms a second double top and fades taking out yesterday’s high.  Price completes a 3 Drives to a bottom pattern and we exit protecting our profit on the bounce back up to Target 1.

Good luck with your trading!

The UK and Europe move their clocks ahead this weekend bringing them back into sync with North America.

Back Tuesday if we find a trade and looking forward to normal trading hours once again.

JPY dropped after the US Unemployment figure was released.  An entry short with a 15 pips stop loss allowed us a 4:1 RR to our downside Target 2.  As the second round of US news was pending we tighten our stop loss to lock in a few pips in the event of a large upside reaction.  If the worst case scenario is we make a few pips, it takes the stress out of trading.  Unfortunately the market didn’t react strongly to the Pending Home Sales release but it did begin to move down further.  We lock in some more profit as it does and get closed at our profit stop just before the European close.

The Nikkei index had been volatile yesterday as we approach Japanese fiscal year end.
April can be an interesting month for the JPY as it has been known to set either the High or the Low for period of April to September.

Good luck with your trading!

Back tomorrow if we can find a trade.  It’s been a slow week this far.

The NZD moved up to begin the UK session and set up for a short after 3 lower highs and no buyers willing to take out yesterday’s high.  Sellers stepped in and price moved down to the Asian lows before reversing and testing the other side of the Asian range.

Fairly subdued session to end the week.  Fitch has affirmed the USA AAA rating.  Several Fed speakers later today.  The market will be listening for any signs of backtracking on Yellen’s comments to an interest rate hike in the spring of 2015.

Enjoy your weekend!

Back Tuesday if we find a trade.