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! The Dollar Continues Its Run
The dollar continued its run today, especially against the Yen. At this rate it looks like 122.00 could be reached as soon as tomorrow. I still have an overall bullish sentiment for the dollar for the short term as the technicals still show its favor for the Greenback.
Chart Analysis:
EUR/USD
Well like I said yesterday, the Euro was giving overwhelming signs that it was about to fall. During the early part of today's session, the Euro followed through like I thought and fell to about 3080 before proceeding to move back up. Daily stochastics are still trending down and have a lot of room before reaching oversold territory so I think the pair will continue to drop throughout tomorrow and early next week. However, in the immediate future, it looks like we may see a little retracement as the 4hr stochastics are trending up. Look for the pair to hang around 3130-3150. After that I expect the Euro to fall to around 3050.
GBP/USD
The Cable nudged higher but we are still seeing extreme highs and lows with very little follow through. The Cable ended up hitting 9600 but then proceeded to fall back down and ended up closing around 9560. Both 4hr and daily stochastics are trending up so I would expect this pair to continue its "rally" (if you can call it that). I think the pair will break 9600 this time but with the type of movement we've been having this week, don't be too surprised if it falls back down by the end of the day. If you are in a trade to go long, you might want to consider exiting if you see the market start to turn.
The Cable has formed a very nice downward channel and we can see that 9600 was the last resistance point. Coincidentally enough, 9600 is also where the 200 SMA is on the 4hr chart. If the Cable can break past this level then we could see a nice breakout. I'd like to go long if the pair can break 9600 and set a target for 9650. My stop will be somewhere below 9600.
Trade Idea:
Buy at 9610; Stop Loss= 9560; Target= 9650; Target 2= 9680
USD/CHF
My long Swissy trade got triggered at 2400 and I thought it would be a quick trade, but unfortunately the price didn't quite reach my target. Now the price has completely retraced and is hanging around 2385. Daily stochastics are still trending up and have a lot of room before reaching overbought territory but 4hr stochastics are currently trending down. My stop loss is at 2350 so hopefully the market doesn't fall too much before turning back up. The triple moving average resistance area has been a tough match for the Swissy as this is the third day in a row it wasn't able to close above this level. Will the 4th time be a charm?
USD/JPY
I said yesterday that the Yen looked like it was headed for 122.00 once again. Today the pair got halfway there as it moved to around 121.50. Daily stochastics are still trending up and aren't in overbought territory yet so 122.00 looks like a very likely target. However, this is a very strong psychological resistance area and you should proceed with caution once the price gets around there.
