Friday 29th January 2010

Good morning all! Looking at the charts, we can notice a clear 1-2-3 reversal pattern coming into the London session. We are however not certain if this will be the beginning of a sustained upward movement. At the moment, the 1.3987 level is obviously a key resistance line; I could be looking to go Long if it's breached convincingly as we come into the US session.

By the way, I got into that long trade yesterday and got stopped out not long after. That's always the thing about anticipating a reversal; the effects of the hitherto dominant trend might still impact significantly on the markets.

Anyway, I'm hoping for some great results today though I won't be at my trading desk for much longer...

Thursday 28th January 2010

Good morning all! I think the play for this morning is quite obvious; we'll be looking to go long on a clean breach of the 1.4036 Resistance line. Those who can afford to be less conservative should probably be in the trade already. The close at 9:15am will partly determine if some more conservative traders will join the bandwagon or not.

By the way, did you notice how the 1.3973 Support line (I mentioned it in my comment on the last post) performed? Even with the sharp news reaction stemming from US president Barrack Obama's speech, the Support line held firmly and price didn't close below it; in fact, the lowest close which occurred at 3:15am was actually on the 1.3973 mark exactly! How accurate is that?

update (9:43am)

Well, the formation of that hammer at 9:15 surely made any conservative trader hold back on an entry. Price is currently trading below the 1.4036 line. A decent close above that line on any of the next few bars should probably trigger a Long entry for conservative traders as well.

Tuesday 26th January 2010

Good morning all! Sorry I've been off the blog for a couple of days. Well, what can I say? Looks like the Asian session has been busy once again. Right now, it's looking like we might still have an opportunity to go Short. In this particular case, I'd very much recommend monitoring the 1hour chart as well and maybe even taking an entry from there.

Tuesday 19th January 2010

Hello everyone, I just checked my charts now and saw the fantastic Short opportunity that's unfolding. I really hope some of you were able to catch that move. The Set-up was very clear. We had a double top at the 1.4412 Resistance line. If you had entered somewhere just below the 1.4373 Support line, you'd be smiling to the bank right now.

As for me, I believe there's still some more downward potential so I'll be looking to enter a conservative Short trade if the 1.4306 Support line is breached successfully.

Monday 18th January 2010

We didn't have much movement on the Eur/Usd today. In fact, price movement was almost completely horizontal for most part of the day. None of our key Support levels was even reached (talk less of being breached). Traders who took on other related currency pairs like the Aud/Usd might have had better opportunities for entry though.

Friday 15th January 2010

Good morning all! Can you imagine that I was awake and in front of my trading station around 3am... and I didn't take the trade?!!! I had just finished setting up my charts for today's trading and I saw the opportunity clearly but I dismissed it knowing that a lot of similar opportunities kind of wait around till the opening of the London session. I also wasn't prepared to stay awake to manage the position. I woke up to find that the market had moved by nearly 70pips!

Now I'm reluctant to enter a Short trade even though the overall market direction is still southwards. The market has put in so many pips already and besides, there's slight positive divergence on the 15minute chart. I may still be persuaded to take a conservative Short trade if I get the opportunity; let's see how it goes.

Thursday 14th January 2010

Good morning all! Looking at the current state of things, I'm primed to take a Short trade on a convincing break of the 1.4515 Support line.

update

Well people, I'm currently in the Short trade... Now I'm looking to manage it as best I can. If you missed the first opportunity and you're still looking to go Short, you could consider getting in on a breach of the 1.4497 level which seems to be a relevant Support level.