Price ranges have contracted sharply last week. Most of it can be attributed to Christmas and typical holiday related slowdown. Also, preceding couple of weeks had been volatile above average. Prices for most pairs consolidated within trading ranges, established, in most cases, on 4H charts. These kind of contractions don’t usually last very long, especially in an environment of world wide financial crisis. The most dramatic moves are likely behind us, but any unexpected fundamental news ( and there is plenty of these) can send currencies on the run. With current price ranges being relatively tight, this might mean decent trading opportunities.
One of these possible opportunities is in AUD-JPY.
This 4H chart shows a promising buy set up at 63.62 and a large objective of about 67. This being an intermediate time frame, trade might take few days- couple of weeks. Breakouts above most recent highs on 1H charts, like 62.40, also offer decent opportunities. I presented very similar set up last Sunday. That one was for NZD-JPY and is still valid. Frankly, CAD-JPY and few other yen pairs look like this.
Something I have not commented on in a while is EUR-GBP.
Most recent low on 4H chart is a sell, but so might be current level. I will give it a shot by selling at the market IF I seen strong bearish candle on this time frame. One might also zoom to 1H charts and sell latest minor low.
I have not covered GBP-CAD in a very long time, I think. With the Pound still residing in the cellar of Forex house, this might be a little premature, but risks are fairly small. Potential buy at 1.8080 is typical of the trades I take. Should the price fall under 1.7800, however, it would be inviting to buy it then. Small risk of about 100 pips or so, which is not often for this cross.
There is much more going on. Euro is showing some signs of cracking, including EUR-USD. As always on Sundays, I’m on a lookout for opening gaps. Will have to careful not get myself into too many trades. That is not very good either.
Mike K.
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Hi Mike. For a EUR-GBP sell, what do you mean by “selling at market after bearish candle”?
That would be selling at a close of strong candle, which is bearish in nature. For example, bearish engulfing line, hanging man or something like that. For this chart it must be 4H candle. But first, one has to form.
In one of the comments you briefly touched on “Forex made easy”. Have you tried that software?
No, I never tried it. I went to one of their selling gatherings, so called seminars and found it laughable. I’ll post a link to my experience there soon.
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