3 trade opportunities you dont want to miss
Hey we have plenty of fundamental announcements coming up this week. Just to name a few:
Monday (yesterday): AUD interest rate
Wednesday: JPY interest rate
Thursday: GBP and EUR interest rate
Friday: USD Non-farm payrolls, CAD unemployment report
Pretty busy isn’t it?
You know how I handle them, I’ve wrote about it a few weeks ago, what I can say is that I’m just going to trade what I see on the charts, I’m not going to get biased on what I think the market will do based on fundamental announcements, etc.
Do you agree with me?
Impact of Social Events to the Forex Market
Now, we may now more or less what the impact of fundamental announcement might be… But there are other kind of events that have greater impact such as Social Events.
And right now we have two social events that may have a great impact in the forex market:
- What happens to Cyprus
- North and South Korean instability
Both of them have the potential to have great impact on the market.
There is no way of knowing ahead of time what is going to happen, we just need to be careful.
Alright… now to the trade opportunities
GBPAUD in a clear bearish condition
It’s been a few weeks since the GBPAUD broke the bottom of the range. Right now it is practically trading around historical lows.
Here is the weekly chart, where it’s clear that it is trading below the resistance level:
Now, this tells me that I should be looking only for short opportunities. So we need to confirm this on the short term chart and see what we get there…
Here is the hourly chart:
We have a clear resistance level and a support level, so we have two possibilities:
1 – Wait for a retracement to the top of the range, and short it from there (upper green level at 1.4612).
2 – Wait for a break out of the bottom of the range and short it from there (lower green level at 1.4399).
Which one do you prefer?
AUDUSD still bullish
I’ve been talking about the AUDUSD in the last few weeks, and the reason is that it is one of the clearest currency pairs of them all.
Take a look at the daily chart, you’ll see what I’m talking about: clear support & resistance levels.
I wont show you that chart again, here is the hourly chart instead:
And the same than the first chart, we have clear support and resistance levels, so we also have two possibilities:
1 – Wait for a retracement to the bottom of the range (around 1.0403)
2 – Wait for a breakout of the top of the range (around 1.0500)
Sounds good to you?
CADCHF rejected off the support level
You know that our work as traders is to identify where the market is likely to move in the next hours/days/weeks to come.
One of the key clues that I look for is rejection off important levels… Take a look of how the CADCHF was rejected from the bottom of the range:
What does this mean?
That it is likely to continue its way up, at least until it reaches the next LT resistance levels which is at 0.9848 (upper blue level).
What do you think about these trade opportunities?
What other currency pairs are you trading?
Do you think the situation of Cyprus and South/North Korean instability could have a large impact in the forex market?