The EUR set up nicely for us once the German ZEW release came out.  After a large news candle down – a bottom was put in and the EUR moved up to our Target 2.  Protecting our profits as the trade moved in our direction as always…we captured a better than 5:1 reward to risk trade.  When you spot these…they can really help make your weekly trading goals.

Off to a good start for the week.

See you tomorrow.

The CHF looked better to me last night than the EUR.  There was no significant economic news for us to wait through.  A very inexpensive stop coupled with a greater than a 5:1 reward to risk makes this trade very attractive.  Moving our stop down to just above the lower swing highs keep us in profit and our Target 1 and  2 are hit on the same candle.

The concerns for this trade were getting through the Asian session low and having price swing up and take us out at our stop…the classic wash and rinse that breakout traders will suffer 80% of the time.  The second concern was getting through yesterday’s low.  Once price got through yesterday’s low, we were quickly rewarded.

I’m out of town tomorrow…back here Tuesday.

Good luck with your trades tonight!

Quiet trading overall in the UK session, but we managed to squeeze some pips out of the AUD.   The Aussie dollar had been making higher lows and once the breakout traders jumped in long after the UK session got underway, we waited for the pullback.

This entry allowed us to enter with an 8 pips stop loss and a better than 5:1 reward to risk ratio to our Target 2.  The trade progressed fairly quickly allowing us to remove any risk and place our “take profit” below structure.  Price seemed to run out of momentum at our Target 1 with a wicky candle closing below our first target.  We exited on the opening of the next candle for a few pips.

Let’s see what tomorrow brings us.

Good luck in your trading!

It appears that the EUR will be making headlines this week, but the AUD set up nicely for us overnight.  After  initially moving down as the UK session got underway, then consolidating, it retraced upward…forming a lower high with wicky candles as it ran out of upside momentum.

We entered short with a stop just above the lower high, with a reward to risk ratio of better than 4:1.  After zipping through the Asian session low and barely missing our Target 1 (due to spread) – we tighten our “take profit” and exit for a very nice profit.  My students would recognize that after the candle that touched Target 1, price had an 80% chance of retracing upward.  This is not due to it touching Target 1, but due to an advanced technique that also tips us off as to when to tighten our “take profits”.

Excellent start to begin the trading week.

I will be travelling on Friday, so it will be a short week for me.

Good luck with your trading!

The EUR made it to both our targets today, but without us.  There was a lot of news pending for the GBP, EUR and USD overnight.  Price chopped back and forth in advance of it and then reacted positively with the EUR making it to and beyond the 1.3000 level.  Expect this level to be tested and retested as it is a major psychological level.

Although the EUR appeared to be making higher lows as the UK session progressed, I chose to stay out of the chop.  Once the news was out of the way, the EUR had climbed significantly and our minimum 3:1 reward to risk was not to be found.  If the news had been perceived negatively by the market, the drop could have been just as significant.

Always be very cautious of trading before major economic news releases and be especially cautious of trading in advance of an accumulation of major economic news releases – like today.

Tomorrow is Non-Farm Payroll Friday in the U.S. and the market is usually pretty flat in advance of the release.  I don’t trade it….so I’ll be back Tuesday.

Enjoy your weekend!

A little quieter overnight with no significant EUR economic news.  After another quiet Asian session, thanks in part to China being on holidays all week, a favourite pattern emerged as the UK traders came on.  The European traders had taken the EUR up starting their session and the UK traders took it down – through the Asian low then snapped it back up after luring in the breakout traders.  Although neither of our targets were hit, we are always happy with 30+ pips.

Lots of economic news tomorrow…so be very careful with your trading… especially when the US session begins, as there is an ECB Press Conference and US Employment Claims.

Back tomorrow.