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 made a pretty good fight today
Here is the technical summary of what happened today in the majors:
EUR/USD- The Euro had been showing signs of a downfall with its daily stochastics being in overbought territory for quite some time now. Today the pair made a nice drop to as low as 3154 and has since moved up slightly, resting around 3187.
Result: The Dollar wins today's battle against the Euro by a knockout!
GBP/USD- The day started out at a deadlock as both the Sterling and Dollar were fighting valiantly. In the end, the Dollar managed to gain enough momentum to edge the pair lower. The pair got as low as 9552 and ended up closing around 9586 which was 55 pips lower than yesterday's close.
Result: The Dollar wins a tough battle against the Sterling!
USD/CHF- After falling to as low as 2146 against the Swissy early on, the Dollar managed to fight back and ended up surging to as high as 2236. The pair ended up closing at 2219 for the day which was 33 pips higher then yesterday's close.
Result: The Dollar pulls a Rocky Balboa and pulls out a narrow victory against the Swissy in the late round of the day.
USD/JPY- Unlike the other pairs, the Dollar was not able to hold its ground against the Yen. Early on it looked like the Dollar was going to pull out another victory, surging as high as 118.85; but the Yen fought back strong and pushed the Dollar down to as low as 116.95 and ended up closing at 117.57 which was 84 pips lower than yesterday's close.
Result: The Dollar gets overwhelmed by the Yen's force and ends up getting beat up pretty bad today.
Chart Analysis: What's going to happen next?
EUR/USD
Daily stochastics are trending down nicely and have just now left overbought territory which means that we could see the Euro continue to fall over the next few days. The 4hr stochastics are also trending down which adds support to the idea that the pair will continue to fall. I'd like to make a slightly longer play on this pair and target the 38% Fib line as the next area for the pair to go to. My stop will be above the most recent swing high which is at 3258.
Trade Idea:
Short EUR/USD at market (3184); Stop Loss= 3270; Target= 3100
*Move stop to breakeven when price reaches 3142.
GBP/USD
This pair is looking just like PipCrawler's mom--------UGLY! On the 4hr chart, the price is tangled up with all 3 moving averages (50 EMA, 100 & 200 SMA). However, there is some light at the end of this crazy range tunnel. Both 4hr and daily stochastics are trending down which gives me an indication that the pair will finally start to fall. I'd like to short the pair if it can break its 50 EMA and set a target for 9500.
Trade Idea:
Short GBP/USD at 9540; Stop Loss= 9580; Target= 9500
USD/CHF
4hr and daily stochastics are trending up with the daily stochastics just now leaving oversold territory. Because this pair has a strong negative correlation with the EUR/USD, it also looks like this pair is headed for its 38% Fib line on the daily chart. Look for the pair to gradually work it's way up there over the next few days.
USD/JPY
Daily stochastics are now in oversold territory but haven't crossed up yet which could indicate that the pair might still fall before retracing. 4hr stochastics are also trending down which supports that theory. We are facing good support at the 200 SMA so the pair may just pierce that level before heading back up. Look for the Yen to fall to around 117.00 again before retracing.
