Last week one of the posts included a description of a market behavior often found on Sunday afternoon, or evening, depending on one’s time zone. In other words, few hours into trading after the weekend. I simply called it the Sunday evening set up, because it is centered on the specific time of the week. Strategy is typically used on Yen pairs, although during volatile times other currencies also tend to follow this pattern, namely AUD and NZD. For full details see the original post.

Yesterday, possible trade using this approach was suggested in G-7 or G-20? Post was published way before market opened and pointed to CAD-JPY as a possible candidate for this set up. After all, this cross already had first characteristic needed for the trade- strong move on Friday with closing at or near daily price extreme. Frankly, it was the only one of all Yen crosses, which was promising enough to follow after trading restarted on Sunday.

On this chart first 3 hours (candles) can be disregarded. They indicate vary early trading, with ridiculous spreads and happen before most other retail brokers open for business. Real action starts with fourth or fifth hourly candle. Price resumed its Friday trend, and came an abrupt stop on the variation of “shooting star” few hours later. Closing of that candle was my short entry, which happened at 83.72. Objective was level of the daily open, represented by lime colored line. Price finally made to that area about an hour ago. Incidentally, 100 SMA also converged in the same zone, making it even more important to get out. My exit was at 83.22 for 50 pips gain. These set ups don’t happen every Sunday, but frequently enough that looking for them can be rewarding.

Most charts look fairly crowded now, with a lot of possible trades forming left and right. Good, should make for busy week. The only problem is being right on the trades. EUR-AUD is one of them. On hourly chart I’m looking for a long trade. Currently price is churning around 100SMA and previous minor low. If move up happens, 1.6735 or a little higher, is a buy level with about 150 pips objective. Risk is small, wherever low happens to be but probably about 60 pips. If price keeps falling, trade is cancelled. CAD-CHF looks interesting if it moves up, so do many other crosses.  And as the week progresses, I’m sure other opportunities will emerge.

Mike K.