Hey traders, hope everything is going well…
What do you think about the market in the last few week?
Sometimes it’s difficult to trade, but in the last few weeks that certainly hasn’t been the case.
A few currency pairs have very clear market condition, and at the end, those are the ones we need to focus on.
What do I mean by clear market condition?
- Clear S&R levels
- Clear Swings
When you’ve got both of them, you know what the market is likely to do in the following hours/days, and that of course helps us take better decisions.
So here is my trading plan for a few of the currency pairs I’m actually monitoring.
The GBPAUD is clearly trading in a very clear bullish condition, it was clearly rejected from an important support level and it is likely to continue its way up at least until it reaches its next LT resistance level.
That means that I’m going to be looking for long opportunities.
Now we need to look at the short term charts and see if we’ve got clear levels there.
The resistance level isn’t that clear, so I wouldn’t take a breakout trade from that level.
However, from the support side its pretty clear, so I will definitely feel comfortable looking for long opportunities from the bottom of the range.
The EURAUD is trading near an important long term support level.
And as you already know, when the market trades near an important LT level, it tends to range in the short term charts…
Now lets take a look at the short term chart:
I like what I see here… Since we’ve got a very clear short term range, we have three possible trading scenarios:
- If the EURAUD keeps trading in between the range, we can trade inside the range, looking for short opportunities around the upper extreme and long opportunities around the bottom extreme.
- If the EURAUD breaks the upper resistance level it will trigger a bullish condition and only long opportunities will be in play.
- If it breaks through the bottom of the range it will trigger a bearish condition and only short opportunities will be in play.
The AUDNZD had been rejected from an important resistance level:
What is important about this chart is that it is likely to continue its way down at least until it reaches its next LT support level which is at 1.0554
So I’m going to be looking for short opportunities.
Now, here is the short term chart:
It already broke through an important support level, which could have been a good place to take a trade.
Another possibility would be to wait for retracement to the ST resistance level around 1.0746, and if we get a significant pattern with downward pressure we could go short from there.
What do you think about my trading plan?
Are you trading any of these pairs?
What other currency pairs are you trading?
Share your thoughts.