My two favorite currency pairs to trade today
Tomorrow and friday are going to be very busy days (fundamentally speaking), we’ve got 3 of the most important news announcements:
On Thursday we’ve got the interest rate announcement form the GBP and EUR, along with each bank speech.
And on Friday the most important of them all: The non-farm payrolls report.
I have a question for you… do you still trade these fundamental announcements?
I don’t know if there are any pure fundamental traders left (news trading) out there. Not because it wasn’t a good way to trade the market, but because the market doesn’t reach to news announcements as it did a few years ago.
Now it is almost impossible to trade them… the straddle technique doesn’t work anymore, slippage is a big problem now (and no broker can guarantee 0 slippage), etc.
Anyway… here are my two favorite currency pairs…
The AUDJPY is one of the clearest currency pairs to trade right now.
Look at the weekly chart:
It doesn’t matter if you dont trade off the weekly chart, the idea about showing the weekly chart is show you that it is safe to look for short opportunities and it would be best to ignore long trades.
I dont even trade off the weekly charts, I take most of my trades off the 15M, 30M and hourly chart.
But when you get a clear idea of what the long term charts are doing, you’ll have better chances on the trades you take on the short term charts.
Last week I analyzed the EURAUD (I even took a trade on it) and it was in a very clear bullish market condition, today: same thing.
It is still trading in a very clear bullish condition and I still feel very confident about this one.
I’m still waiting for the EURAUD to hit the 1.4000 level. And here is my plan on the short term charts:
I’m waiting for a small retracement (again) to the short term support level around 1.3575…
So we’ve got around 450 pips to go… anyone care about 450 pips?
What with tomorrows news announcements if I get a signal on these currency pairs?
If I get the signal today and the market has moved enough to make me feel comfortable about moving my SL to the breakeven level, I’ll hold them.
I wrote about this before, after a few years of watching the impact of the news announcements, I realized that most of the time, the market reacts in the direction of the market condition…
What do you think about the EURAUD and AUDJPY?
Do you still trade the news announcements? Do you hold your trades during important announcements?
Leave a comment.