Firstly a big thank you to Travis for letting me know the site had briefly disappeared. A quick call to the webhost resolved the issue.
USD bears may be reconsidering their positions after the very bullish NFP number today. Today there was nothing that appealed to me… a lot of back and forth price action going into the weekend.
On Thursday the GBPUSD set up for a long early in the U.S. session overlap. A long was taken risking 17 pips for a potential 78 pips to our daily target at 1.4039. Price rose slowly through its Asian session high and retested this level for some time before running into sellers where it had the previous day. Price tried to climb higher to take out the 1.4000 big figure and sellers emerged, We closed the trade at the previous day’s high,
On Wednesday it was the EURUSD that caught my attention. This was a classic wash and rinse of breakout traders. Price dipped below its Asian session low early in the U.K. session luring in breakout short traders then reversed to test its Asian session high, luring in breakout long traders.
Price failed above its Asian session high and a short was taken risking 14 pips for a potential 78 pips to our daily target at 1.2022. As the pair moved lower we allowed for a retest of the previous day’s high, the Asian session low and protected our profit going into the U.S. session. Fortunately price dropped at the U.S open and we protected half of that move lower. Price retraced half of previous candle triggering our profit stop.
Some levels to keep an eye on next week for the EURUSD and GBPUSD:
EURUSD
Above 1.1900 – 1.1915/1.1925, 1.1979, 1.1991, 1.2000, 1.2022, 1.2054, 1.2068, 1.2082, 1.2095
Below 1.1900 – 1.1885/1.1895, 1.1845, 1.1836, 1.1816, 1.1800, 1.1758, 1.1745, 1.1710
GBPUSD
Above 1.3800 – 1.3830/1.3840, 1.3900, 1.3907/1.3917, 1.3938, 1.3967, 1.4000
Below 1.3800 – 1.3776, 1.3761, 1.3731/1.3741, 1.3718, 1.3700, 1.3680, 1.3663
Enjoy your weekend, stay healthy and good luck with your trading!
