Hi, welcome to the start of another weeks forex trading. Hopefully you managed to make pips from Fridays analysis on the Euro/Gbp which was a simple break out, followed by a pullback. Standard M2 trading method. There are more of this type of trade lining up for tomorrow as explained in the video below. After last weeks gaps at the market open I am going to concentrate on daily & intra-day trades trades for the week ahead.
The Goldman Sachs Fraud Case which was announced late on Friday may cause more volatility at the market open. Personally I will wait until London open before deciding on tomorrows trades. There is a huge amount of news this week which again is likely to drive price as we wait for the markets to establish some overall trends. Trading with the trend is much safer and a lot easier to analyse.
The $USA gained late in the New York session on Friday, now we have to discover whether this just a temporary phenomenon or the start of some $ strength. The Euro zone & Great Britain has a lot of scheduled news this week and there is the ongoing crisis with the fallout (literally) from the Icelandic volcano eruption. Almost all flights have been cancelled since Friday. This is obviously costing the Airlines a fortune but there is the further knock on effect to all these economies if this situation drags on.
The Greek situation has not gone away & the UK has a general election in a couple of weeks time. Markets hate uncertainty so all of this could lead to yet more volatility. I have had a much higher % of losers in the last few weeks than normal because trades are being taken out before reversing back in the direction I want. If you are having the same problems, don’t beat yourself up. Concentrate on the lower risk trades like the one I pointed out on Fridays Euro/Gbp.
The current choppiness is not easy, but there are trades to be had. Trade conservatively. Wait for price to come to your pre-determined place. Only trade 1 pair at a time. Consider reduced stakes if you are not too confident. If you are relatively new continue to trade on a demo account. Use the time to learn. Heaping stress upon yourself is a pointless exercise.
Note to new members: This is NOT a tipping service. What we aim to do here at forexmentorpro is to teach you how to trade forex for yourself. I show you in the daily blog posts the areas that I am looking to take trades & why. All based around the M1 & M2 methods that we teach in the forex strategies section. If you are new please start in the LMT section. You do NOT need the LMT BUT the videos in that section are fundamental for mine & most professional forex traders systems; support & resistance, fibs, trend lines etc
| M1 | Asian session could be busy again in which case this method will not work. The good thing is it only takes 2 minutes to check this method. If nothing is possible I will go back to bed J |
| Lmt | Still too much sideways movement.. The LMT is a trend following system. We have little or no trends hence it will not work until they return. Leaving alone |
| Gbp/$ | The Icelandic volcano is crippling Britain at the moment. This uncertainty may contribute to a weakening of the Gbp. There is House Price Inflation news around the market open. Housing costs are very important in the UK economy. Another months weak figures would put further strain on the Gbp. Price finally broke and closed below 1.5380. This is also a break out on a 4 hour chart as I show you in the video. Standard M2 method we now need a pullback to around 1.5370 for a short. |
| Euro/$ | I had an order to short at 1.3700 last week which I cancelled on the Wednesday. Doh, price then fell 200 pips over the next couple of days. Moveon.com J There are very mixed signals on this pair at the moment. A 50% fib pullback of last weeks candle would spookily take us back to 1.3580 which is also the monthly 55ema which has been hugely important over the last few months. So I will consider shorts there and possible half stake longs (counter trend) at 1.3380 BUT I will decide at the time NOT a forward order. Price could simply fall straight through here. |
| Chf/$ | Very messy. Price has again stopped at major support & resistance & daily trend line at 1.0610. It may once again bounce back down from here but its not for me. If the Euro does fall down this will go up. If it goes up I need price to break and close above 1.0700. We have had a lot of opportunities to long around 1.0510 in the last few weeks so I will consider a half stake long if it gets back down there. |
| $/Yen | One to watch: Finally we got the triangle break out on Friday that we had waited for all week. You could have successfully traded this from the 4 hour charts on Friday, but if you are a daily charts fan we now need a pullback to this line around 92.90 tomorrow which also happens to be the weekly 55ema & the psychological level triangle break & the 50% fib of last weeks move ie MULTIPLE reasons which as you know is what I am looking for. My main concern Is that it might not get that far back so watch carefully around 92.50. The theory of a triangle break out suggests that there could be another 150 pip fall here. |
The Above is just a small example of the detailed analysis I provide every day on up to 10 forex pairs with my low cost forex mentor program. We have over 50 mini educational videos, e-books & indicators as well as the daily blog post & email support from myself and Dean. Between us we have over 14 years experience trading forex from our respective homes and have “been there & done that” including every mistake known to man! If you would like to know more, click on the banner below:
Trackbacks/Pingbacks