Had a busy day on all fronts. Most importantly trading wise. A lot of trades using all kind of charts, short term, long term and everything in between. Today’s developments are very interesting. British Pound once more changed direction and became stronger. As a matter of fact GBP established a new multi months high against USD at 1.5350. This advance didn’t translate into solid gains across other currencies and right now Pound is falling yet again. But it was enough for my GBP-CHF trade from yesterday to reach objective and even exceed it. Chart is posted farther down this page. Japanese Yen had a very good day without much news. Important news, that is. Most JPY pairs have reached or approached serious resistance areas on daily charts and the price is pulling back now. Just about every Yen cross is developing fairly large and well defined reversal pattern on hourly chart. They all look very similar, some of them are more advanced than others. NZD-JPY lags behind and might be a good sell at 57.90, for about 130-140 pips. Euro, Franc and Dollar are already pass that same sell point on their respective charts. I see it only as a correctional move, not a reversal within larger picture. Before the week is over I’ll be looking for buy signals in Yen pairs. Couple of charts will be posted tomorrow.
Back to that GBP-CHF trade that went as high as expected. Great, only I got out earlier, without realizing full potential. Trade was closed yesterday, not too long after it was posted.
This is a snap shot from yesterday, right after I closed it. Price moved fast as soon trade had been established and came to within few pips of target. Once that hourly candle closed, I gave it another 15 minutes or so and covered for 75 pips. It really was not too bad of an exit, considering that price fell from there for 12 hours or so, before resuming up trend.
Another trade, EUR-CAD sell was about an hour ago.
I don’t feel like following markets any longer today, so 1.5915 is good enough for me.Gain of 170 pips and faster than I expected. Good trade.
Staying with the Euro for now. This time in conjunction with with Kiwi.
New Zealand dollar had enjoyed nice run until this week. I think it is due for a correction of some magnitude. Hourly chart of EUR-NZD has a making of a reversal. I would prefer a little different bottom, but this also looks promising. Plan is to buy on a break above 2.2760. Order is placed few pips above. Target could as high as 500 pips, that’s what the chart is indicating, although I’m more comfortable with 300 pips. Hope tomorrow is as busy and productive as today.
Mike K.
Seems like a very good day. Congrats.
Thank you.
Since last week, cable has made four new highs in twenties trading days. I use daily point and figure chart to gauge trend. On daily PnF, cable formed a double top breakout at 1.50. Cable is above 50 & 100-day ema, and there is a bullish crossover. So far the trend for cable is up. I will remain bullish until there is any reversal signal.
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What is your outlook for eur-nzd trade? Couple of days or weeks?
It is hourly chart, so, if trade happens, 2-3 days.
Well, Pound is at it again. Faking me out.
Andy, you are not alone. Cable is awfull now, but I just caught few pips going down. I’ll sit on my hands for some time now.
Hi Mike,
Would you place the stop for EURNZD below the 2.25 low?
Thomas, I’d place a hard stop at 2.2420, but at this point closing candle under 100 SMA would be better stop. For that you’d have to check the chart every 1-2 hours. I’m looking for 300 pips, 500 is probably possible. This pair can have such sharp turns, that if I see 300 pips tomorrow, I’m happy.
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[…] today. No dramatic moves, some crosses painting possible reversals. I have been following EUR-NZD for a few days now. It reached the target I sought while writing yesterday’s post. Managed to […]
[…] looks a little vulnerable now, so I’m placing a buy order in EUR-CAD. Last week there was a good trade in this pair covered on these pages. I think current situation is promising as well. Plan is to buy […]