May 29 – June 3
AUDJPY – Once price broke the trendline with a solid bull candlestick, the four hour chart came into play. Momentum out of a slight consolidation was a buy on May 31. Price ran 212 pips to highs.
EURUSD – Short played out for 100 pips downside before a rally.
GBPCAD – Short was a great setup that fell for 328 using a break on May 24 low as entry.
GBPNZD – Downside continued
USDJPY – Simple trigger of break of highs on the four hour chart for a 339 pip run.
142 pips potential last week with too much ranging price action. Tough conditions the last little while and this recent rally has traders unsure if it is a recovery or a short lived bounce in the overall market. We need to see sustained trending movements to get some decent price action that screams for attention.
May 22 – May 27
AUDUSD – Price continued to rally
EURAUD – Price ranged
EURCHF – Price ranged
GBPUSD – Break to the upside for 142 pips potential
USDCHF – Price didn’t rally for a short
The world is still in turmoil but you can still make money trading. Although 190 pips potential last week doesn’t seem like a lot, remember that position sizing is what it’s all about. Find a setup, have an entry trigger, and enter a trade. Too many may see some setup but have not defined what their entry trigger is. This is a good article about ways to enter a trade.
Far too many currency pairs are not showing good price action on the daily chart. They’ve not for a while. You can do a few things including looking at weekly chart or lower time frame intra-day trading. For me, I will stick with my daily chart and continue to take trades that fit my criteria and follow my management protocols. Consider doing the same.
May 15 – May 20
AUDJPY – No upside trade
EURAUD – Got our pullback but not entry to the upside
EURCHF – A short lived long off the break of an inside bar for 58 pips. However, this move higher from the lows of March was actually a higher time frame complex correction. Once price failed to make new highs, short below a break of May 12 low for 132 potential.
EURGBP – Price broke down
622 pips potential last week with AUDJPY showing a perfect bear flag formation. Flags are one of my favorite chart patterns to trade. This week we have some decent pullbacks shaping up but in the markets of today, anything is possible. Be a risk manager first, take the easy profits, and don’t try to be a hero.
May 8 – May 13
AUDJPY – Perfect bear flag and potential 468 pips to the downside.
BTCUSD – Continued to decline
EURCHF – The chart shown was the weekly chart and price rallied into our zone. 67 pip breakdown
EURUSD – Price continued to the downside
GBPJPY- Price broke support
USDCAD – As written, this was a resistance zone in a range and price rejected for 87 pips
USDJPY – Price failed to rally
Markets across the board are not in great shape but last week still had potential of 558 pips. With so much uncertainty and central banks playing with interest rates (one of the drivers of the currency markets), we don’t expect trade opportunities to be a large amount. Added Bitcoin this week which is at a point for a short term long trade. As always, respect your stop loss and don’t be afraid to cut your trade if momentum steps in against your position.
May 1 – May 6
AUDJPY – Price formed a complex correction during the week.
EURAUD – Was looking for an upside break that didn’t come. Price far too erratic
EURJPY – Price formed a trading range
GBPJPY – Price dropped 197 pips after the pullback
GBPNZD – While this chart initially set up for a long trade, the failure test of the highs was an entry short for 361 pips to lows
While the overall markets are in turmoil, our setups from last week did well. 979 pips potential last week but of course you would not get all of those. When you have multiple setups with the same currency, you have to determine which one you want to trade. Using the average true range can help you narrow down which pair has the most potential for bigger gains.