Traders, I hope you had a great weekend! And had some rest because you are going to need it!
Last week was a difficult week to trade, we had plenty of fundamental announcements: interest rates, NFP, Central Banks conferences, etc, etc, etc.
No wonder why so many traders and investors didn’t trade much in the last two weeks, you can see that because of the low volume and small ranges (i.e. GBPUSD hourly chart)…
But things should be different now.
Now, there are a few currencies that are still trading in a consolidation period, they should be out of it by the end of the week.
And that’s good news for us, usually when the market gets out of those consolidation periods it really moves, so I think we all should be ready when it happens.
Agree with me?
Anyway, here are a few of the currency pairs that I’m currently monitoring.
If you look at the long term chart (daily) you’ll see that it traded for a couple of weeks near a LT resistance level (around 1.5244), but now it looks like its already out of it:
So it looks like its already broke that consolidation period, which means that it is trading in a bullish condition.
Lets see what the ST charts look like:
You see that range? Last Friday announcement helped the EURCAD broke through it, which is good.
Now, I have two possible scenarios to trade the EURCAD:
- If it retraces back to the ST support level (1.5343) and it forms a significant pattern with upward pressure, I’ll go long.
- The second scenario is if it retraces back and we don’t get that pattern, but still it moves up, I’ll set an order above the previous high (the previous high is 1.5463), 10 pips + spread.
I’m comfortable trading both scenarios, we’ll see what happens.
The USDJPY is trading in a similar condition.
It traded for a while in a consolidation period in the LT charts:
Again, the USDJPY already broke that range, which is exactly what triggered a bullish condition, meaning that we should only look for long opportunities.
Now we need to look at the ST charts to confirm our trading plan:
So basically I have the same two possible scenarios:
- If the USDJPY retraces back to the ST support level (around 102.63) and we get a significant pattern with upward pressure, I¡ll go long.
- And the second one is if the USDJPY retraces back and we dont get our pattern, but still moves up, I’ll go long at the breakout of the previous high (previous high is at 103.74), 10 pips above + spread.
How was your trading last week? Did you trade?
What do you think about my analysis and entry signals?
What other pairs are you following?