Forex Tips

Fed Chair Yellen surprised the market with a unexpected hawkish stance suggesting that rates may rise in the spring of 2015.  For now, leaving interest rates and tapering unchanged but projecting unemployment rates to drop by the end of this year.  Big moves followed as the USD strengthened after her comments.

During the UK session as the EUR and GBP weakened, we chose a pair with a more affordable stop loss and enter the AUD short.  The pair moves down to its Asian session low and bounces – closing the trade for a modest gain.

Good luck with your trading!

Back tomorrow if we find a trade.

Lots of economic news out the of the UK this session.  As the US traders began, we see the GBP reverse immediately and a second bearish candle confirmed the short entry.  We enter with a stop of 18 pips for a potential 71 pips to our Target 2.

As price nears the Asian session high we see a doji-like candle and tighten our profit stop to protect our gains.  We are closed out for modest gains on the subsequent candle, but my students will note that a pattern completed with the doji-like candle.

The market eagerly awaits Janet Yellen’s speech today.  The USDJPY is very quiet in the meantime.

Back tomorrow if we find a trade.

Good luck with your trading!

Governor Wheeler announced a rise in interest rates last week in New Zealand from 2.5% to 2.75% and the NZD is rising for now.   As the Kiwi began to rise and move back within the Asian session area with bullish candles, an entry is found.

Placing a stop below structure we had a 3:1 Reward to Risk ratio setup to our Target 2.  With a pending German ZEW release, we move our stop loss to plus 1 and await the market follow through.  Price moves up incrementally and pauses at our Target 1.  We give it a few pips of wiggle room and we are closed by the market at our profit stop.  Price continues to rise to our Target 2 and beyond without us – oh well.

The market awaits key numbers from the UK tomorrow and traders will listen closely to Janet Yellen’s speech for clues regarding the US economy going forward.

Geopolitical events although far from resolved have abated somewhat as we await the politicians next moves.

Be very cautious of the EUR at the 1.40 Big Figure.  The AUD has been rising and as we approach higher valuations, remember that Governor Stevens referred to this area as being “uncomfortably high” for Australia’s economy last year.  The GBP too looks heavy at current valuation making the news announcements tomorrow all the more important to the market.

Good luck with your trading!

Back tomorrow if we find a trade.

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.

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

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!