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Tag Archives: currency

Trading Update – Euro Dollar Breaks 137. BNP Paribas Target 140.

Euro Dollar yesterday broke through the 137 level printing a high at 13710 and closing the session at down 70 pips at 13640. Yesterday BNP Paribas put a price target of 140 on Euro Dollar.

The Euro currency is very strong at the moment so we could see a test of that level in the coming weeks but i think in the longer term the Euro will weaken against the Dollar as the fed scale back on QE. Europe may also step in with a rate cut if Euro continues its upward trend as a strong Euro will hurt the recovery in Europe.

There was a rumor circulating yesterday that Goldman Sachs had closed its long position on Euro Dollar. If you read my post from the 12th Jan you will remember that they put a price target of 137 on Euro Dollar. Well according to rumors yesterday that position has been closed. A 70 pip drop from the highs could also back that up. I closed my Euro long at 96 so i missed the top by 14 pips but i went short at 13700 which more than made up for the 14 pips. 🙂

Cable made a decent rally this week, but more talk of a downgrade saw the price crash 180 pips yesterday. I had a price target on Cable to go short that unfortunately did not get hit, but we had a couple of decent trades on Cable this week so that’s OK.

Euro Yen continues to push higher which i think is contributing to the Euro Dollar rise, they seem to be feeding off each other at the moment. There was a crazy move on Euro Yen yesterday, the price pushed down 100 pips and then went back up 200 pips an hour later. You don’t see moves like that very often and it was clearly market manipulation, which caught a lot of short sellers out.

AUD USD pushed down this week but we did see a little recovery on Friday that we managed to get in on. My longer term view on AUD is bearish as the currency is still pretty high compared to where it usually trades, so it could go down quite a bit over the next few weeks. I have a longer term price target of 10225 on AUD, so a bit further to go down yet.

Please note: that my views on these pairs are purely my opinion based on the price action i can read on the charts. My views are not a recommendation to trade. What i do is far more complicated than just picking targets. You need to be fully conversant with my methods before you can trade these targets.

Trades for this week.

Sorry i did not give a midweek update this week but i have been really busy so did not have the time. I did not take as many trades this week as normal but i still had a good week.

Monday. Cable long at 15713 up to 15742 for 29 pips. AUD long at 10386 up to 10406 for 20 pips. EJ short at 12203 down to 12177 for 26 pips. EJ short at 12173 closed at 12184 for 11 pips loss.

Tuesday. Euro long at 13423 up to 13473 for 50 pips.

Wednesday. AUD long at 10404 up to 10428 for 24 pips.

Thursday. Cable short at 15833 down to 15813 for 20 pips.

Friday. Euro long at 13608 up to 13665 for 57 pips. Cable long at 15810 up to 15840 for 30 pips. AUD long at 10363 up to 10423 for 60 pips. Euro long at 13667 up to 13696 29 pips. Euro short at 13700 down to 13660 for 40 pips.

Total trades for the week 12. Total pips for the week 378. Not a great week for me pips wise but still good. One loser this week which does happen from time to time.

Trading Update. Markets Moving Nicely Yesterday

We had a great trading day yesterday. The markets finally woke up after a few days of not doing much at all.

First trade of the day was Cable short at 15891 down to 15818 for 33 pips. This was a classic high probability set up for the way we trade. I love these set ups.

Second trade was Euro long at 12725 up to 12748 for 23 pips.
Third trade was Euro short at 12745 down to 12692 for 53 pips.
Fourth trade was Cable short 15887 down to 15850 for 37 pips.
Fifth trade was Euro long at 12692 up to 12731 for 39 pips.
Sixth trade was Cable long at 15835 up to 15884 for 49 pips.
Seventh trade of the day was AUD long at 10292 up to 10327 for 35 pips.

We have not had 7 trades in a day for a while. So i am very happy with a great end to the week.

Total trades for the week 15, total pips 513. Best week for a while. 513 pips profit for the week from 4 currency pairs is very good trading in my book. Very happy. 🙂

If you want to learn my method please contact me a

Have a great weekend.

Market is a bit slow at the moment.

Not much happening at the moment. No major moves yesterday apart from Cable shooting up after Mervyn King said that QE may not now happen. For those of you that do not know what QE stands for, it stands for Quantitative easing, which is basically printing money. When Governments print money it devalues their currency. So if no devaluation is planned and the market expects QE, then the currency rallies.

My 4 pairs are in a slow up trend so i will be looking for long entries. No clear set ups at the moment so i am happy to wait. There is an announcement regarding the Yen a bit later on so that may have an effect on the currency market, so need to be aware of that. Should see a trading opportunity this afternoon i would think, so i will post the trade on the blog if i take one. I generally get at least one good trade per day depending on how busy i am so lets hope one comes along soon. Have a great trading day everyone. 🙂

Which Forex Pairs Should I Trade To Make The Most Money

Which Forex pairs should i trade to make the most money?

When i first started Forex trading i only traded Euro Dollar. I traded that pair because it has the tightest spread, the best liquidity, and it consistently produced good moves on a daily basis. Euro Dollar is still my favorite pair to trade but i also trade Cable, AUD, and EJ. AUD don’t move as much as the Euro generally, but the spread is nice and tight. EJ moves well, but the spread can be a little wider. Cable moves very well, but the spread on Cable can get as large as 3 pips, so i will only trade Cable if i see a really good set up.

If you are new to trading i would recommend you start by trading Euro Dollar as i did. When you trade only one pair, you get to know how it moves over time, and that will help you with your trading entries and exits. Some traders only trade one pair, and do very well indeed. Specializing in trading just one pair can pay big pips, but you don’t get as many potential set ups when you trade only one pair. This is the main reason i trade 4 majors, and occasionally CAD. CAD don’t move that much, but you can get some good set ups on that pair, so its worth keeping an eye on.

The set ups that i look for work on any currency pair, and on any time frame so i am not limited to certain pairs, so i generally go for the pairs with the tightest spreads. If you are trading pairs such as Cable AUD and Euro you are trading against the Dollar, so if the dollar is weak all those pairs will rally, and if the dollar is strong the reverse will happen, so it does not really matter which pair you trade against the Dollar, so go for the one with the tightest spread. You can trade them all if you want, but the more pairs you trade at the same time, the more balls you have in the air so to speak. Its a lot harder to manage multiple positions, so i would not advise that you open multiple positions until you are a competent trader.