Hello traders,
Today I have taken the day off because it’s Labor Day here in Europe and thus the market volume during the London session was expected to be thin. One of my Golden Rules of Sensible trading is not trade on thinly-traded markets, and a continent-wide public-holiday certainly fits in that category.
None the less, I wanted to share with you a couple of interesting charts: EUR/GBP, which seems to be showing weakness right now despite the overall uptrend, and USDJPY which is sitting at a decision-taking level on the weekly chart as it’s banging onto long-term resistance (105.00). Should the Yen curl down from here we might see some new short opportunities worth following in the near future.
By the way, I am taking a 10-day holiday. I am going to visit Prague, Vienna and Budapest with my lady so I won’t be trading through the next week - I will be back on Monday 12th of May. Until then, I wish you a profitable and enjoyable Forex trading!
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2 May, 11:31 am
hello hector,
wishing you nice holidays in thoose beutiful towns.
greetings from germany
uwe
6 May, 9:37 am
you were right the market was moving thinly lol. However some people still can make profit from the thin market because when it is calm usually it will follow precisely the technical factors of the trade. And as you can see the EUR-USD exactly at the point where it should be based on the technical analysis B.Band, Stochastic, and MACD
12 May, 4:32 pm
Hector! Welcome back.
I’m sure many of us, like myself, have missed listening to your blogs. It would have been fantastic if we
could have continued the blog in your absence and anyone who hits 90% of the trades gets a free trip to
Spain or some place sexy :)
Nonetheless, these are the setups i’m following, I would like to have your ideas if you think they are
worth continuing or not:
USDCHF (Weekly): A Beautiful downtrend. If the price creeps up to the 1.0700, I will be looking for short entries on the daily chart
GBPUSD (Daily) : I am spotting a sort of Head and Shoulders pattern within a head and shoulders pattern on the right shoulder with 3 bounces off the 1.9435 support. The 4hr chart looks like a promising resistance line if it can break, pull back and continue with the 1.9400 round number
USDJPY (Weekly): Similar to the USDCHF above, a beautiful downtrend. The 105.54 provided good resistance levels. It has just broke downwards and is currently pulling back at 103.42ish and waitng to go down a few hundred pips.
CHFJPY (4HR) : Good resistence level approximately at 98.58. Currently moving sideways and waiting for a break below the 98.50 round number on the 1hr chart
USDCAD (Weekly): Consolidation for this cross slightly above the 1.0000 round number. Since the 1st April, this pair has been consolidating sideways and I smell a good opportunity to the downside in continuation with the longterm downward trend (that is slightly fat bellied like the person writing these setups).
So, what do you think guys?
..:: Daniel ::…
12 May, 6:35 pm
Glad to know your back Hector, we been missing your blog.
DANIEL : Iv got a minute to respond about your first setuo USDCHF, Im not convinced we will get up to the 1.0700 area just yet. As we have a doubletop at the 1.0600 (4hr) and a trendline break. If we break through the 1.0400 im looking to go south if i get an entry, just down-to the next support trendline.
On the other hand maybe the support will hold.
13 May, 3:07 am
thinking about a long audnzd 30 min flag looks like an upwardly inverted nice flag price is @ 1.2300 and rising :)
Btw Hector, hope u had a great vacation. Banked 40 pips twice on london breakouts going ur guide. Piece of art
happy trading all,
-fx
13 May, 4:26 pm
Anyone else eyeing up the USDCAD Weekly flattop triangle? Broken support line upto 1.0000 number
13 May, 7:25 pm
fabio : Thanks for pointing this out mate. I agree with you and I will be following a similar break (didn’t take any notice of the doule top to be honest since I mistakenly only took notice of the weekly charts and daily charts). I assume when you said “If we break through the 1.0400 im looking to go south if i get an entry, just down-to the next support trendline.” The next support line is the 1.0255 line ? (that i am seeing in the weekly retracement) ?
Cheers,
Dan
13 May, 10:17 pm
fabio: Will you be taking this trade (USDCAD Weekly) upon a break of the 1.000 round number (and wait for a bpc)? Or having broken already, and pulled back a couple of times on the 4hr chart, will this trade give you the green entry signals to go get your surf board and give it a shot to the short shore?
Kr,
Daniel
14 May, 10:25 am
Daniel. Im thinking about taking the USDCAD, IT looks to me like the breakout is in a daily range.
But when i zoom out and look at the monthly swings down i think the prior swing is actually at 1.1000 and not at the 1.0350. So i might wait to see it make some new lows then look for a short position.
Im never comfortable when looking to take trades off the weekly chart. Massive stops and always takes ages to get moving.
Thanks
Fabio