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! Friday's NFP surprise gives the Greenback some life!
So the NFP Report came out much higher than expected on Friday and caused the Dollar to make a nice run against the majors. The consensus for the NFP was 100k which would've been a decline from the previous number of 132k. Instead, the NFP came in at 167k which is in fact, was 35k higher than last month's number.
Coming Up:
Nothing worth mentioning!
Chart Analysis:
EUR/USD
The Euro is resting right at 3000. 4hr Stochastics has shown an extended period of being in oversold territory and daily stochastics has just begun to enter oversold territory. With no major news events tomorrow I think the market will retrace some of the moves it made on Friday. I think the Euro will move back up towards its 38% Fib line on the daily chart to around 3030.
GBP/USD
The Cable is currently around 9274 and seems to still be falling. With the daily stochastics just beginning to enter oversold territory I think the pair will move down to its 61% Fib line before bouncing back up. I'm going to buy the Cable at 9220 and set my target for 9300. My stop will be at 9180.
Trade Idea:
Buy at 9220; Stop loss= 9180; Target= 9300
USD/CHF
The Swissy has broken through its 61% Fib line on the daily chart and is now testing resistance at its 100 & 200 SMA. Daily stochastics has just entered overbought territory so it may have a little more upside momentum but I think the pair will eventually bounce back down off of the SMAs.
USD/JPY
The Yen was making a nice rollercoaster drop until the NFP came out and caused the pair to shoot back up towards 119.00. Now it seems that the pair is continuing where it left off and is beginning to fall again. I still expect this pair to fall to its 50 & 100 SMA which also happens to be where the 38% Fib line is.
Conclusion:
This week will most likely follow the technicals since we have a light fundamental load. The only major news events for the week are the Trade Balance on Wednesday and the Retail Sales on Friday.
