About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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March 2006

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Pick of the Day: EUR/JPY

Posted 20:18 13 March 2006 | Comments

Here's a daily chart of EURJPY. As I've mentioned before, the EUR has been range bound, so I'm looking to do a resistance play. I will enter an order short at approximately 143.50 on the EURJPY with at 50 pip stop and target the top of the middle channel (dotted line).

USD/CAD

This pair has been trading inside the channel drawn. The pair is currently at the top of the channel also right below the 100 SMA. Short approximately at 1.1600 with a 50 pip stop. Target 1.1500 first, then 1.1400.

AUD/USD

On this pair we have a another downtrending channel play. I am looking for a short entry when there is a candle close below the bottom of the middle channel. Ultimately, I am going to target the bottom of the channel, but look out for resistance or retracement at the .7200 price level. Exit the trade if the pair moves up to the middle dotted channel line, or the take profit at the .7200 price or bottom of the channel.