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After a bounce at multiple levels of support during London trading, the USD/CAD rose as oil futures dropped during the two hours prior to the open of today's New York session. An entry at the 5 ema was standard from a technical perspective, but more aggressive only because of moderate event risk presented by the Canadian economic news due for release within the hour. An hour later, conservative traders who sought to avoid the event risk found their own entry at the 5 ema. Although the Loonie didn't reach our primary target, it did produce a profit of between 15 and 40 pips [depending on the entry].
As the FX market awakened throughout the London session today, the Japanese Yen pairs offered anyone paying close enough attention an hour's worth of clues as to an impending breakout to the upside. This along with sharply rising overnight markets in the Dow/Nasdaq/S&P Futures, as well as the Dax and Ftse, confirmed that there was a high probability of a nice upshot incoming. Using multiple time frames to identify the key area of resistance that had to be broken, using a combination of Bollinger Bands, Stochastic crosses, 5/8 ema/sma crosses, 21/55 ema's to determine speed was picking up, we were able to virtually pinpoint the breakout point. Once the USD/JPY broke this region we traded a nice basket of yen pairs for over a 500 pip overall gain among the mix, and still climbing as this video is being uploaded (just move those stops and protect your profits!). Even focusing on just one pair would have netted 80-250 pips depending on the pair. Gotta love nights like this.
Pivot points, Fibonacci studies and average daily ranges all told the same story at the start of today's New York session: The pound, euro, and swissie had already run their course for the day. Conservative traders who read the proverbial writing on the wall, and remained disciplined about picking their battles, most likely followed the path of capital preservation.
Using a move on the pound-dollar, we utilise overlapping of different studies as a take profit area. The move covered about 60pips depending on spreads.
Keeping the theme to today's video simple, we investigate the correlation between direction on the $Y and another pair, this time the AUD, to identify maximum pippage. Although the $Y and AUD $ pairs present some decent movements, because we were seeing a weakening yen and a strengthening AUD we maximised our profitability by trading the Aussie-Yen.
An overview of the upcoming PPI and Retail Sales releases, including expected pip results as well as which currency pair to trade. Live FOREX Training | Everyday! http://www.fxbootcamp.com
The USD/CAD had been dropping during the day's prior sessions. At the open of today's New York session, traders found the Loonie sitting at a trendline and the 55 ema on the hourly chart. Aggressive and conservative traders alike got their entry signals, and rode the bounce up to the tune of between 80 to 110 pips [depending on entry and exit].
After a couple days of major carry trade unwinding, we experienced a somewhat choppy beginning to today's London session. However, with eyes wide open we were able to find a few decent trade plans, two of which I cover in this video. AUD/USD bounced off today's central pivot point, creating a new 15m trend line at the same time. With several subtle clues, or even a little further after 3minute confirmation a decent long entry between 0.8895-0.8905 was very achievable. The market then provided us with a quality 'ride the 5' ema scenario where price steadily rides the 5ema, all the way to our target netting most in the room around 60-65 pips. USD/CAD also broke out of 15minute consolidation, only to return to the scene of the crime and offer a beautiful retest using 3minute chart stochastic confirmation. This pair then plunged to our take profit area netting most 60-70 pips depending on entry. Nice clean moves for over 100 pips total, gotta love those.
During London trading, the EUR/JPY had already broken the M1 pivot point and bounced at S2, dropping nearly double its recent average daily range in the process. Although the pair was destined for consolidation, New York traders still had hope. Those who applied range trading techniques on the 3-minute chart in the early part of today's session, managed to carve out two separate trades – one short, one long – each netting up to 50 pips.
Today could have been proclaimed central banker day, with three central banks making headlines to capture the attention of currency traders. The New York session featured statements from the leaders of the European Central Bank and the U.S. Federal Reserve. The EUR/USD remained rangebound as the ECB indicated a wait-and-see stance, then saw an immediate spike in volatility reminiscent of a major news trade as the Fed's Bernanke offered a more dovish tone in his prepared statement to Congress. Traders who waited for a conservative entry found that the market had nothing left after the five minutes of high volatility diminished.
The USD/CAD had already covered its recent average daily range in a move from the central pivot point to S3 during the Asian and European sessions. New York traders arrived to find the Loonie in a range defined by the M1 and S2 pivot points. Fortunately, the combination of a better than expected Ivey PMI number for October and rising oil futures brought out the Canadian dollar bulls. The S2 to S3 move produced a 30 pip profit for short-term traders, and the possibility of a swing trade for those with a medium-term mindset.
Without much news today many pairs had some nice technical moves begin in the early Moscow session. In this video we discuss how even though these pairs had already started their move for the day, there are ways to insert yourself into a pre-existing move to catch the rest of the wave. Using S&R levels, Fibonacci retracements/extensions, pivot points (both daily and weekly), bollinger bands, and short term time frame stochastics for confirmations, we were able to catch the 'rest' of the moves in the USD/CAD & GBP/CHF moves for the day. There were more opportunities than these two available tonight, but 100 pips from two pre-existing moves is certainly enough to satisfy most people =)
Looking at the EuroUSD pair today, we see an occaision where a triangle pattern, known to be a continuation pattern, not breakout in continuation of the preceding trend. It does, however, display typical price projection targetting on a triangle breakout.
We cover two types of entries - the more aggressive and conservative.
Please enjoy.
Today's U.S. news calendar featured the ISM services report for October. Although the main ISM number slightly exceeded market expectations, the figure confirmed the recent trend in the index – flat. Those who have followed recent U.S. news reports would recall that moves after news in the direction of dollar strength have, for the most part, lacked follow-through lately. That knowledge, combined with the identification of the nearest real levels of support and resistance, helped traders avoid what would have been a losing trade during the latter half of today's New York session.
The $Y provide a nice 40 pip opportunity today by utilising 114.80 as a level of resistance, 4hr 21, 1hrly 55 (close to 200 too) AND CPP as entry, targetting the mid-range level of 114.40. Please enjoy.
We take a look at the $Y today. Using range trading methods we see a maximum profit of 30 pips. In the latter part of the video we identify what may have helped you stay in on this particular leg to realise up to about 50 pips. Please enjoy.
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