I just wanted to ask you about the currency pairs are you currently trading?
There are days that is kind of difficult to find trade opportunities, on those days, we need to trade the least we can. Because our job is not to trade everyday, but to trade only when the odds are on our favor.
But today is different, there are plenty of opportunities out there, both, short term and medium term opportunities.
I’m going to focus only on the short term charts, but as you already know, the most important aspect of trading is how you choose the instruments you trade.
Get that right, and you’ll have 80% of the job done!
So I’ve already done my long term analysis on each one of the opportunities below, but in this article, I’m just going to focus in the short term charts.
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…
Its been quite slow hasn’t it? In most currency pairs it has been ranging and most of the time, in a not well defined range, making it very difficult to trade.
Take a look at the EURUSD, its been like that, its been ranging since the last week of January, with only one major quick move (fundamentally driven by the way)… but other than that, its been slow, not well defined, etc.
I wonder how traders that only trade the EURUSD are doing… probably not very well…
The EURGBP is one of the Forex crosses that has been trading consistently between support and resistance levels. I like it when I see any pair behaving like this; it gives me confidence and feel more comfortable looking for trade opportunities.
Please take a look at the next chart:
Now that it is clear that the EURGBP broke the resistance level, I will be looking for long opportunities until it reaches the next LT resistance level.
My Trading Plan:
As long as the EURGBP trades above 0.9118 I will be looking for long trade opportunities. My next LT resistance level is at 0.9271
The EURGBP is trading in a medium term range in between 0.9272 and 0.9079, around a 200 pip range. This is very nice range for this cross as it doesn’t move that much. Please take a look at the next chart:
Since the EURGBP was rejected from the long term resistance level, we should be looking for short trading opportunities.
My Trading Plan
As long as the market keeps trading below 0.9241, I will be looking for short trading opportunities. All take profit orders will be placed above the next long term support level around 0.9079
The EURGBP traded in a tight range in between 0.8817 and 0.8721 for almost three weeks, but now, it broke the long term resistance and it is trading in a strong bullish market condition. Please take a look at the next chart:
Its likely that the EURGBP will reach its next long term resistance level around 0.9019.
My Trading Plan:
I will look for long trading opportunities and will set all my TP orders below the next resistance around 0.9019.
The EURGBP just entered into a bearish market condition. It traded for 3 days in a short term range in between 0.8823 and 0.8776 (because it was trading at an important long term resistance level – blue line). Please take a look at this chart:
So, we will have a bearish market condition as long as the market continues to trade below the short term range.
Here is my trading plan:
As long as the market continues to trade below 0.8776, I will look for short trading opportunities, targeting the next long term support level at 0.8649.
Earlier today I thought the EURGBPwas getting ready to bounce back from its main support level (it has been trading in a range since the 19th of April). But things have changed a little since this morning; please take a look at the chart below:
The EURGBPis now trading below the main support level of 0.8784, this means that we need to be looking for short opportunities in the short term charts. Take profit orders will be placed a little above the next support level of 0.8645.
Green levels: Short term S&R levels
Blue levels: Long term S&R levels