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! Finally some life in the Greenback!
Recapping the Majors
EUR/USD- The Euro pretty much did a repeat performance as it once again hovered around 3600 but was unable to make any significant ground past that level. The Euro still ended up making a small gain against the Dollar which makes this the 6th straight days of gains made by the Euro.
Result: The Euro made a small gain against the Dollar but was unable to make any significant movements past the 3600 level. This is the 6th straight victory for the Euro versus the Dollar.
GBP/USD- After reaching the 2.0100 mark yesterday, the Sterling has since fell back down and today got as low as 9983 before moving back above the 2.000 mark. The Sterling had been rallying against the Dollar for 6 days between April 9-16 and gained over 400 pips against the Greenback. Today's move could be the start of a retracement back below the 2.0000 mark which is a very extreme level for the pair.
Result: The Sterling finally fell against the Dollar as it briefly dropped back to the 2.000 mark
USD/CHF- The Swissy started the day off strong as it fell to 2000 but it was unable to sustain its momentum and the Dollar rallied back to around 2050. Today's bounce off the 2000 level may be an indication of a reversal in the Dollar's favor.
Result: The Dollar was able to hold its ground at 2000 and pushed the Swissy back near its open at 2050. This shows indecision and could be a sign of a reversal.
USD/JPY- The Yen once again started off strong as it pushed the Dollar down to as low as 117.60, but it lost its foothold and the Dollar managed to bring the pair back up to around 118.40. Through all the volatility the Yen still managed to gain a little ground against the Dollar.
Result: The Yen once again started off strong but only managed to make a small gain against the Dollar.
Chart Analysis: What's going to happen next?
EUR/USD
The Euro looks exactly the same way it did yesterday. Although daily stochastics are in overbought territory, it is still trending up and 4hr stochastics are also trending up as well. I think we might still see the Euro hover above the 3600 level but I really can't see it moving past the 3650 level. Overall my sentiment on the pair is bearish.
GBP/USD
Well the Sterling fell back to 2.0000 like I thought it would and I think we will see the pair to continue to fall in the short-medium term. 4hr stochastics are trending down and are heading into oversold territory which means we could see some retracement to the upside. However, daily stochastics are still in overbought territory and are now trending down. I think we may see a re-test of the 2.0100 level but I really can't see the Cable getting any higher than that. Unless we see some major fundamental catalyst in favor the of the Sterling, expect to see some big drops in this pair.
USD/CHF
The Swissy ended up falling down to 2000 but immediately spiked back up towards 2050. 4hr stochastics are trending up while daily stochastics are now in oversold territory. With today's price action, it looks as though the pair will reverse and head back up to 2100 . Today's daily candle has formed sort of a spinning top or hammer like candle which is a good indication of a reversal.
USD/JPY
The pair fell to 118.00 like I thought but it ended up rising back up to around 118.50. Daily stochastics are still trending down nicely so I still think the pair will continue to fall. At the moment, 4hr stochastics are trending up which means we could see the pair move up in the short term but I would expect to see yet another fall to the 118.00 area.
