The Week of Monday 14th December 2009

On Monday 14th December, the market was in no hurry to go anywhere. In fact, it was almost like a horizontal line for most part of the day. We obviously had no entries signaled on this day but then that's part of the game.

Tuesday's trading was very simple and straightforward but best of all, it was also rewarding. The market had been in a tight range throughout the previous day and the breakout move occurred at the beginning of the London session today. We took our entry at about 9:00am once price breached the 1.4628 Support line. Entry was at 1.4628 and the first position was closed at 1.4608 for a profit of 20pips. The second position was closed at 1.4559 around 3:30pm for a profit of 69pips.

On Wednesday, trading started out with the market bouncing off a significant Support line and then heading upwards. A Long trade was signaled around 12:30pm when the 1.4568 Resistance line was breached. Entry was at 1.4572 but our first target was not hit before the market started to reverse. We eventually ended up exiting both positions 2hours later with a loss of 26pips each.

We woke up on Thursday to find that the market had declined by over 100pips during the Asian session! This made us a bit cautious about taking trades but we couldn't resist taking a conservative Short trade when the 1.4366 Support line was breached around 11:15am. Entry was at 1.4360 and the first position was closed at 1.4341 30minutes later for a profit of 19pips. The second position was stopped out at entry around 12:30pm.

Friday's trading started with the market knocking on the 1.4405 Resistance level. Remember that this was previously a Support line which I called in my last article. After price breached that line, it became Resistance. When price couldn't break through the Resistance line, it eventually continued it's downward journey and a Short opportunity was created when the 1.4321 Resistance line was breached around 4:30pm. Entry was at 1.4314 and the first position was closed at 1.4285 for a profit of 29pips. The second position was stopped out at entry around 7:00pm.