The Week of Monday 30th November 2009

On Monday 30th November, the market started out close to a significant resistance level on both the 15minute and 1hour charts. Price couldn't break through that level convincingly and it finally started heading south. There was eventually an opportunity to go Short when the 1.5002 Support line was breached around 5:30pm. Entry was at 1.4993 but the market didn't get to our profit target before it started to reverse. We eventually exited the positions at 1.5003 around 9:15pm for a loss of 10pips on both positions.

Tuesday's trading started with the market rising quickly. The best entry would have been on a break of the 1.5044 Resistance line but our entry parameters were not fulfilled since price closed too far above that level. We had to settle for a conservative Long entry which occurred around 11:15am when the 1.5073 Resistance line was breached. Entry was at 1.5074 and the first position was closed at 1.5107 around 5:15pm for a profit of 33pips. The second position was closed at 1.5094 around 9:00pm for a profit of 20pips.

On Wednesday, we were looking out for a Short entry since we had multiple signals that price might be heading south during the day. Interestingly, our entry wasn't triggered because price decided to swing sideways for the most part of the day. When the nearest Support level was eventually breached around 5:15pm, price closed too far away so we ended up staying out of the markets.

The market started out drifting in the upward direction on Thursday. We were looking to go Long and we found our opportunity when price breached the 1.5093 Resistance line at 7:45am. Entry was at 1.5095 and the first position was closed at 1.5117 around 8:30am for a profit of 22pips. The second position was closed at 1.5116 for a profit of 21pips (at 2:45pm).

The non-farm payroll data was released on Friday and as always, it was a significant market-moving event. We generally stayed out of the markets on this day.