Daily analysis of the US forex market trading session with DailyFX Currency Strategist John Kicklighter and Terri Belkas. Includes coverage of economic and financial market news, as well as an outlook for the day ahead and trading ideas.
The pre-London session today produced some quality trade setups, as well as a noticeably weak British Pound Sterling and strong Swiss Franc. Yet just over an hour after London open, prior to the British retail sales news release, we found ourselves at a plethora of overlapping support. Even though we had no real reason to buy the GBP/USD at this point fundamentally, technically it looked like as long as we did not have major negative retail sales, we should see a nice little pop to the upside, at least on the short term. Little pop in this instance being 120-200 pips. Once the retail sales came out better then expected, it so strongly rose that it became difficult to take a pullback entry due to no real pullback. GBP/JPY launched, and so did all the other JPY pairs. So in this video I stay focused on how we handled the GBP/USD, the hardest entry of all the entries at this time frame today, and how patience still netted us at least one 50 pip trade before some strong clues warned us at first resistance to take profit. It did ultimately did cover around 150 pips to the upside, it was just very difficult to enter the long conservatively without chasing price. All trades are not created equal, yet we still had an amazing night. Great way to kick off the 40 hours of straight forex trading/coaching marathon FXBootcamp members are enjoying this week.
FXBootcamp London Currency Coach-
Christian Stephens
GBP/USD retail sales support news trade Fibonacci pullback bollinger band London Forex FXBootcamp Christian Stephens
EUR/USD had a tremendous continuation after the FOMC announcement during yesterday’s NY afternoon trading. So here we are yet again, finding ourselves opening the London session at major long term resistance for the EUR/USD. 50% Fibonacci retracement long term from the 1.60’s high, Daily 200 ema, ripe for a pullback. However, since this most recent uptrend(or long term pullback depending how you look at it)has been controlled mainly by longer term charts, any drop/pullback off the daily could be very difficult to time and manage profits on say a 15m, or hourly chart. While there were several entry opportunities throughout the night on the pair, most of which ended up in minor profit, or break even, in this video we highlight one attempt using a lower high/possible 1 2 3 reversal pattenr setup to clue us into the shorter term charts for a trade plan. This plan ultimately netted around 50-60 pips depending on exit strategy. Also, once profit was taken, it allowed one to leave a ‘peice on the table’ for what could later be a much deeper pullback. If all this sounds like too much work, well, welcome to countertrending my friend, never a dull moment and constantly fighting with where to take profits etc. But again, it was the cards we were dealt for London. All British Pound pairings turned out to be the currency pairs to play with last night, nonetheless I think it important to show how we tried to ’stick a short’ on the EUR/USD last night, while limiting risk.
FXBootcamp London Currency Coach-
Christian Stephens
http://www.forexcandlestickcourse.com Watch as The Forex Candlestick System is demonstrated. Very large profit potential from this Forex course and system.
A news-free Monday of a holiday week at year-end can make for some tough trading conditions. It was slow going during the first two hours of the New York session for the EUR/JPY, as price action for that currency pair was defined by a 15-pip range prior to the opening bell for US equity markets. An increase in volatility after the bell led to a break below a trendline which had supported the euro yen since the London open. Traders who took the short trade entry following the trendline re-test, then stayed in the trade until the London close, walked away with nearly 50 pips in profit.
The famous Yogi Berra quote, It’s deja vu all over again, must have been in at least some Forex traders’ minds at the open of today’s New York session. Selling pressure on the US dollar began at that time, as it had on 6 of the previous 7 trading days, and the euro rose to the occasion after a big post-FOMC move the previous day. A bounce at support at the start of the session was the pitch, and it looked like a grapefruit to those traders whose bias was up. The outcome was a 300-pip homer.