After making a series of lower highs the NZD set up giving us an entry with a near 4:1 Reward to Risk to our Target 2.  This setup was confirmed further with the AUD and GBP moving down at the same time.  To my eyes the Kiwi looked best.  It stalled temporarily at the Asian session low.  We move our stop loss down to plus 1 pip and wait to see what will happen when the US traders begin.  Price pushes down in advance of the news to our Target 1.  We always protect this level and the US news reaction takes us out immediately.

This is frequently occurring pattern in the markets and it completed nicely.

Good luck with your trading!  Enjoy your long weekend…if you’re taking one!

It’s Easter weekend and we are finished for this shortened week.

Back Tuesday if we find a trade.

The EUR ran up early on in the UK session then began to retrace.  The first part of the retracement didn’t look too convincing to me.  A short entry is subsequently found after the lower high with a better than 4:1 Reward to Risk to our Target 2.  If price stalls at the Asian session lows, we still have a 3:1 R/R.

It wasn’t until after the US news that price began to drop.  When it did, we moved our modest stop loss to plus one.  Having waited so longfor price to move down and seeing an inside pattern completed, we exit the trade on the first bullish candle close.  Price subsequently made it down to the Asian low without us.

Trading has been tricky so far this shortened trading week.  The hourly charts are telling us why…price needs to make a decision.

Good luck with your trading!  Be very selective with your setups and keep stops very tight.  Geopolitical risk is high right now adding another layer of potential volatility.

Back tomorrow if we find a trade.

A number of trades set up very nicely during this session.  I liked the JPY best and missed out on it yesterday while focused on the AUD.  One of my pro students got both, so I had my eyes on it this session. The majors were very attractive for trading in the early hours of the session and after the US news for the reversal.

The JPY after making lower highs set up for a short with a 4:1 Reward to Risk to our Target 2 – requiring a conservative 15 pip stop loss.  We enter short detecting both the setup and a favourite pattern.  If price had gone to the Asian session low or further…it would have be picture perfect.  We are closed by our profit stop in advance of the US session.

Overall a very easy session to pick and choose from to end the week.

Good luck with your trading!  Enjoy your weekend!

Back Tuesday if we find a trade.

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.