Hey traders, I hope you are doing alright with your trading.
What do you think about the market lately? In the last few weeks, most of the currency pairs (specially the majors) have been trading in a very tight and undefined range…
It has been difficult to trade them… What’s your take?
Ok, let me tell you mine… but first something about fundamentals.
Fundamentals for the rest of the week
There are plenty of fundamentals this week, and a few of them are very important.
So maybe that’s the reason the market has been trading in a very tight range? It could be… but the truth is that no one knows the real reason…
Anyway, these are a few of the fundamentals that you need to be watching this week:
USD FOMC minutes (the most important of them all)
EUR Draghi Speaks
AUD Employment report
GBP Interest rate
EUR Draghi Speaks
CAD Employment report
I’m going to be specially careful about the FOMC minutes, it has the potential to change the sentiment of the market, so be careful alright? Specially if you plan to open a trade in any USD pair or if you have a trade open and the market is close to your entry or SL level…
Forex Majors Analysis
Almost all majors have been trading in a very tight and undefined range… If you have been trading them you know what I’m talking about…
Here are a few charts:
So how do you trade that?
Easy… just dont trade them.
I’m serious…. forget about them, there is just no way to profit from swings like those… Remember that staying out of the market is our choice, it’s a trading decision because you could be risking your capital instead.
I’m sure you can find a profitable trades here and there on those pairs, but that’s not our main goal as traders.
Our main goal as traders is to find opportunities when the market is really likely to move in one direction over the other, that way we can use the probabilities on our favor.
So what do we do here?
Just find other crosses with clearer market condition…
Forex Pairs I’m Currently Watching
Here is my long term chart:
It looks like the GBPUSD was rejected from an important resistance level around 1.6259 and I think it is likely to continue its way down, at least until it reaches the next LT support level around 1.5694.
So I’m going to be looking for short opportunities.
And here is my short term chart:
It’s got clear S&R levels on the short term charts… so it’s perfect to look for trade opportunities.
I’ll wait for the GBPUSD to break the short term support level around 1.6003 to open my trade.
From all the charts, this is probably the one that’s got the clearest market condition, clear swings, clear support and resistance levels, etc.
Here is the daily chart:
In this case obviously, I’m looking for short opportunities.
So what do you think?
The best medicine to avoid short term undefined ranges is to stop trading them, and focus on the ones that have clearer market conditions.
Have you been trading the majors lately? Results?
What about the GBPUSD and the CADJPY? Would you trade them? What other pairs are you currently watching?
Please share your thoughts.