Good trading week last week, albeit with a lot of seesaw action “reading between the lines” was oh so important in order to bank profits. Economic news releases at present are proving to be rather contradictory. The US posts bad employment figures, yet the Dow continues to soar to record highs as to property values in the US are also on the up, some 20% in just the past 6 months. Huge divergence on equity market values across the globe – is the US over valued, Europe Undervalued or a bit of both ?
I attended a FX seminar in London on the 6th April at the British Library. Good fun catching up with other traders and talking FX for a whole day, very enjoyable and with a good mix of speakers. The event was arranged by the London Traders Network – their next event will be on 6th July 2013. Keep tabs on the details by following this meetup group : http://www.meetup.com/TheLondonTradersNetwork/ Few better ways for a trader to spend a day !
My two trades of the week.
1) +50 pips Long on GBPUSD 4H Chart Thursday 11th April
You can see the setup on the attached picture. Cable trading within the uptrend range but had clearly stalled at a resistance of 1.5345 and tested in 3x. I took a long order above this resistance expecting a momentum move to the upper trend area. This was the second phase momentum move as can be seen on the MACD so I wasn’t expecting it to be the strongest and only held the position for a day and bagged 50pips by 16:00 and managed to close out before the pair fell away the next day.
2) +20pips Long EURUSD 30m Chart Thursday 11th April
Not the type of trade I am looking for these days, as I am focussing more on start and end of day trades, but this one popped up after a referral and I took a look. It met my conditions after tweaking the entry an exit criteria. This trade had a convergence bounce of both the daily pivot and rising trend line, proved to be enough momentum to take the price thru my target in just 10 mins and then I was out and counting pips!
Short Opportunity on AUDUSD Next Week 4H Chart
I will be looking for a short setup on AUDUSD next week as a reversal week is looking a high probability and AUDUSD has just hit the limits on its Range Bound area. Take a look at the 4H chart below and you can see a good 75-100pip potential off a typical ABC Bounce from a recently broken support at 1.0500 back down to an established S/R at 1.0400. Maybe the Monetary Policy Meeting Minutes in AUD on Tuesday will give the boost to this trade opp.
Lots of trading news this week to create some Market maker positioning which will provide us small traders with some great opportunities, so good luck out there and stay in touch.