The Week of Monday 21st December 2009

On Monday 21st December, the market started out drifting towards the 1.4339 Support line. We were a bit cautious about taking a Short trade because the pattern wasn't exactly the way we would have loved it to be but our confidence was bolstered by the outlook on the 1hour chart. We took a conservative Short trade around 8:00am. Entry was at 1.4333 and the first position was exited at 1.4303 almost 2hours later for a profit of 30pips. The second position was stopped out at entry by noon.

Tuesday's trading proved to be profitable in both directions. The day started off with the market drifting upwards and eventually breaching the 1.4306 Resistance line. We took a Long trade with our entry at 1.4308 and the first position was closed at 1.4326 about 30 minutes later for a profit of 18pips. The second position was stopped out at entry a few minutes later.

During the US session, we had an opportunity to go Short when price breached the 1.4272 Support line around 4:15pm. Entry was at 1.4267 and the first position was closed at 1.4238 for a profit of 29pips. The second position was stopped out at entry around 7:00pm.

Wednesday's trading started off with the market drifting upwards towards the 1.4266 Resistance line. It was however not able to breach that level until around the beginning of the US session. Entry was at 1.4267 around 1:45pm and the first position was closed at 1.4291 for a profit of 24pips. The second position was closed out at 1.4351 the next morning for a profit of 60pips.

On Thursday, we took a conservative Long trade when the 1.4351 Resistance line was breached. Entry was at 1.4355 around 7:45am and we nearly closed out our positions 2hours later when price crossed below the 1.4351 but didn't close below it. The first position was closed at 1.4390 at 11:00am for a profit of 35pips. The second position was also closed out at 1.4390 around the beginning of the US session for a profit of 35pips.

Friday was Christmas day so the markets were on break. You'll observe that price was basically a horizontal line up until trading resumed on Sunday night.