Lots of volatility following lots of economic news and overall the news has been positive.  Following the US economic news, buyers entered the EUR creating an opportunity for a long trade.  Price quickly moved up stalling near yesterday’s high.  The profit stop is moved just under the Asian session high, which is not subsequently tested.  Wicky candles appear at the session high, and the take profit level is adjusted upward.  Price pushes through our Target 1 level easily then pulls back, so we close the trade.   The subsequent candle goes right to our Target 2…without us.

FOMC statement tomorrow during the US session.

Good luck with your trading!

Back tomorrow if we find a trade.

The EURGBP tends to move slowly and it doesn’t have the range of the majors most days, but it can be a very tradeable pair.  It tends to be less volatile than the majors too and at times trends very nicely.

This trade set up producing a familiar entry.  The pair moves a few pips against us for the first hour, then begins its descent – stair stepping down.  We close the trade just above the Asian session low as the UK traders end their week.  Price subsequently moves down to our Target 1 without us.  The move was modest, but each pip is worth more than 1.5 pips of a USD cross… so not a bad trade to end the week.

Good luck with your trading!

Back Tuesday if we find a trade.

Enjoy your weekend!

The EUR moved up nicely once the US session got underway.  This trade set up with a better than 4:1 Reward to Risk ratio to our Target 2.  At this time of day, we will take a 2:1 R/R… so this trade setup was very appealing.

After the first candle, it didn’t look nearly as good.  Fortunately by the third candle after entry, it was up and away, closing bullishly into the Asian session.  After price tested and retested the Asian session highs, it found a little more strength which fizzled with a wicky candle closing near the swing high from earlier in the session.  We exit the trade as price penetrates the earlier swing high.

There were other nice trade setups this session (not shown) – the week has been very productive and we are only mid week.

Good luck with your trading!

The GBP chopped sideways most of the session until the US traders began their day and like the EUR it began to climb with USD weakness.  After 2 very bullish candles an entry is found with a stop below the Asian session lows.  This stop is progressively moved up and the trade is closed at Target 2.  As price began to climb, it hit the Asian session high before backing off and closing at yesterday’s high.  We removed the risk from the trade by placing our “take profit” just a bit above our entry.  Price got a second wind and after stalling at the Asian session high once more, it pushed up to our Target 2.

Good luck with your trading this week!

Back tomorrow if we find a trade.

The charts of the majors have been somewhat erratic for trading this week…possibly due to the US NFP pending release tomorrow.  It’s always best to look for high probability setups and  keep stop losses small.  I always like to find a setup on a chart that makes sense to me and allows for a modest stop loss.  The EURGBP looked like the best option during the UK session and resulted in a modest gain.

Tomorrow is NFP Friday and we don’t trade that session, so we will be back on Tuesday if we find a trade.

Good luck with your trading!

The CHF was fairly subdued before the US ADP Non-Farm Employment number was released.  As it did not take out the Asian session high and made a series of lower highs, an entry short is found.  Unfortunately, the market went sideways for a couple of hours and all we could do was remove the risk from the trade by placing the stop loss at plus 1 pip.

The news release created a sudden drop through both yesterday’s low and the Asian session low, before buyers entered the market and price reversed.  We exit promptly.

Always be careful trading around major economic news releases.  Employment figures for the US tend to create lots of volatility in both directions.  In trading, as in Newtonian physics, this is known as Action Reaction.

Good luck with your trading!

Back tomorrow if we find a trade.