Like the title of this blog suggests, making pips in the Forex is easier said than done. This "reality blog" will allow you to follow my life as a Forex trader. I'll not only discuss trades, but also my emotions during these trades. You'll see my ups and downs, my highs and lows, and my smiles and tears.
This is the true story of one man, picked to live in front of his computer screen and find ways to make money off the Foreign Exchange. See what happens when markets stop being polite, and start being real! BOJ Rate Announcement and CPI headline this week's trading
Big Pippin is back! This week ima keep it gangsta in the FX skreets and stay on my hustle fo dat papah nah mean?! Ahem...(now in my professional voice) The Dollar made slight gains on the Yen but ended up losing against the Euro, Sterling, and Swiss Franc. The major headlines for the week are the BOJ interest rate announcement on Tuesday and US CPI and FOMC minutes release on Wednesday. Hopefully these reports will give us plenty of trading opportunities this week. Now let's take a look at the charts...
Chart Analysis:
EUR/USD
Is the Euro topping out? After breaking out past that tough 3040-50 level, the pair has been hanging around 3150 for the past few days. Daily stochastics are in overbought territory and 4 hr stochastics are not far behind. Last week I had a short trade idea to sell the pair if it broke back below it's 61% Fib line. That trade happened to win and I think I'm going to use it again because it still looks like a good opportunity.
Trade Idea:
Sell at 3130; Stop Loss= 3160; Target= 3100; Target 2= 3080
GBP/USD
After making a nice run up and down, the Cable pretty much ended up right back where it opened, which was right around 9500. 4hr stochastics have crossed up while daily stochastics are trending down. Neither are in overbought or oversold territory so they're not really any help for me today. Not exactly sure where the pair is going to go but it does face some resistance at 9540 and above since that is where all 3 of its moving averages are on the 4hr chart.
USD/CHF
My oh my has the Swissy made a nice run against the Dollar the past few days. It looks like it's well on its way to hitting 2300. 4hr stochastics have crossed down but are near oversold territory and daily stochastics are already in oversold territory and look to be crossing up soon. The most likely scenario for the pair is for it to gravitate towards 2300 and then proceed to bounce back up to around 2330-2350.
USD/JPY
After making a wicked drop of about 200 pips the Yen seems to be giving some of its gains back to the dollar. The pair is headed up towards its 50 EMA on the daily chart and could face short term resistance there. 4hr stochastics are in overbought territory which supports the 50 EMA resistance idea, but daily stochastics are in oversold territory and have just crossed up which indicates that we could see a longer term uptrend. If the pair can break its 50 EMA then there is a good chance we'll see it hit 120.00
