Look traders, the moment you think you have finally figured out how the market works, it changes its behavior…
And that’s the reason we always need to be adapting to the market conditions.
Always.
In fact, I believe that it is the single most important aspect of trading, not only forex, but all other markets.
Hey trader, hope everything is going well…
I have a question for you, have you had a chance to look at my previous articles? If you haven’t, please take some time to take a look at them…
They will save you money and a lot of time! They’ll help you understand how the market how the market works, how to choose the right instruments to trade, how to take advantage of them, etc.
Here are the links:
Important aspects of my strategy
Market Dynamics: How the market moves
When to go Long and When to go Short
How to find profitable Breakout Signals
How to take retracement signals
I’ve been looking at charts for more than 12 years, I’ve tried everything… What you see on those articles, is exactly what I think works best to get results.
What I like the most about it, is that you can even combine it with your own strategy…
Ok, lets go through some charts now!
You already know about the importance to choose the right currency pairs to trade each day.
Look, even if you have the best system in the world, if you choose the wrong currency to trade you wont get too far.
On the other hand, if you are using an average system, but you trade the right currency pairs each day, you’ll be fine in the long run.
What’s your take about this?
How do you choose which currency pairs to trade each day?
Now, these are a few of the currency pairs that I believe are trading in a very clear market condition.
The GBPUSD is trading in a very clear bearish condition, let me show you why I think its bearish:
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…
It’s interesting that from the currency pairs & crosses that I’m monitoring right now, the yen crosses are the ones with the most interesting market condition, including:
EURJPY, GBPJPY, NZDJPY, AUDJPY
These crosses are trading in a very clear bearish market condition, but that’s not all, the next LT support level is a few hundred pips away on all of them.
But one pair I don’t like right now is the USDJPY, not clear market condition, no consistent support & resistance lvls…
Weird isn’t it?
Be careful tomorrow with the NFP announcement
Trade Safe!
Raul Lopez
AUDJPY, dollar-yen, EURJPY, euro-yen, GBPJPY, nzdjpy, yen crosses
Since the last time we analyzed the AUDJPY it was in a bullish market condition, and judging it in the weekly charts, it is still in a bearish market condition:
The AUDJPY right now it’s trading at 67.95 and the next LT resistance level is at 69.57 so we still have room to look for long opportunities.
My Trading Plan:
As long as the AUDJPY keeps trading above 67.08 I will be looking for long opportunities.
All short opportunities will be ignored.
Trade Safe!
Raul Lopez