Hey trader, how is your trading going so far this week?
I’ve seen the market started to move in a few currency pairs, in some others the market has been pretty slow.
So I guess it’s all about choosing the right currency pairs to trade.
That’s the reason I encourage you to look and analyze a wide variety of currency pairs, or instruments. If for some reason you dont feel comfortable with any pair, you can always trade gold for instance, or oil, or indices or high volume stocks, etc.
But please, make sure you only trade the ones that have a clear market condition… the ones that you feel comfortable with, the ones that have clear S&R levels and clear swings.
If you focus on those, sooner or later, results will come. You just need to be patient and trade when the odds are in your favor.
That’s it, that’s what trading is all about: choosing the right instruments to trade, and trade them at the right time.
What do you say?
Ok, lets get to some charts…
The EURUSD has been trading in a very clear bearish condition, that means that it is likely to continue its way down…
I know I’ve already talked about this, but the EURUSD is very likely to reach the parity level.
You know that most of the time the market moves from one level to the other, in this case, I dont see any significant level until it reaches the parity level.
Now, you’ve got to remember that you are watching the weekly chart, so it might take a while before the EURUSD reaches that level… but I know one thing for sure, its more likely to continue its way down…
So, what does this mean to you?
That you should be looking for short opportunities. Whatever system you are using, use it to find short opportunities and avoid any long trade.
Just a word of caution, Draghi speaks tomorrow, so please be careful.
I’m glad plenty of traders have taken advantage of the way the EURGBP has been moving.
I’ve talked about it on my previous articles, and I’ve been getting a few emails asking me if there is still enough room to trade it…
I think its too close to the next level, so it might be good only for a few short term trades. Here is what the chart looks like:
If you find a good opportunity in the short term charts, go ahead an take it, provided that you get a good risk reward ratio.
Just be careful because the next LT is too close alright?
Let me show you this chart first:
You didn’t see this one coming did you?
It looks like its been rejected already from the LT resistance level, so we need to adapt to the market conditions, and start looking for short opportunities.
The strategy here is simple, just look for short opportunities until the NZDJPY reaches the next LT support level which is at 84.20
More than 400 pips away from where it is currently trading at.
The Norwegian Krone is another one that is worth taking a look at.
I know most of you don’t trade it… you might think this one is an exotic currency but it isn’t.
I’ve traded this and the USDSEK (Swedish Krona) and it has been a good experience. Both are very stable currency pairs and I feel comfortable trading them.
Here is the USDNOK chart:
It is trading in a very clear bullish condition, in fact, it is trading at historical highs, so looking for long opportunities is the way to go here.
You would need to trail your SL and let the market stop you out, since we’ve got no further. resistance levels.
What do you think about the currency pairs I’m currently monitoring?
What other currency pairs are you trading?
Share your thoughts